116-118 High Street, Irvine, Ayrshire

Description

Town Centre Heritable Leisure Investment. Key features include letting to Luxury Leisure (t/a Admiral), upper floor sublet with terms unknown, town centre location, and VAT applicable. Gross initial yield: 15.63%. Current rent reserved: £25,000 p.a.

Location

Irvine is approximately 30 miles south-west of Glasgow and 7 miles west of Kilmarnock. The property is situated on the east side of the High Street, close to its junction with Bank Street. Irvine Rail Station is approximately 870m away and provides regular services to Glasgow Central. Nearby occupiers include Semichen, Iceland, Jobcentre, Morrison’s Daily, Subway, Ladbrokes, Paddy Power, TSB Bank and Nationwide.

Tenure / Property Information

Investment Analysis

Commercial heritable investment let to Luxury Leisure (t/a Admiral) at a stated current rent of £25,000 p.a. The guide range of £160,000–£180,000 implies an initial gross yield of approximately 15.63% at the £160,000 lower guide, consistent with the supplied auctioneer figure. No completed sales, formal valuation, passing rent evidence beyond the stated rent, lease rent-review details, or quantified purchaser costs were supplied. VAT applies, but the amount and recoverability are unknown. The upper-floor subletting terms are also unknown.

Investment Snapshot

Strategy Recommendation

Consider as an income-holding commercial investment only, subject to satisfactory review of the lease, tenant covenant, rent evidence, upper-floor sublease, VAT position and Special Conditions. Do not rely on a residential or refurbishment exit strategy.

Works Required

No refurbishment works are evidenced. Prior to bidding, review the lease, rent account, tenant covenant, upper-floor sublease, EPC and all physical/legal documentation. Any works, compliance expenditure or reinstatement obligations remain unquantified.

Rental & Market Context

Potential BRRR Position

A BRRR analysis cannot be completed because no supported GDV, finance terms, refurbishment budget or quantified acquisition costs are available. The stated lease expiry is 2 October 2031, with no further breaks noted in the supplied particulars, but lease terms and rent-review provisions require verification.

Buy-to-Let Analysis

This is a commercial investment rather than a residential BTL. Using the stated £25,000 annual rent and the £160,000 lower guide produces a gross initial yield of approximately 15.63%. Net yield cannot be established because purchaser costs, VAT treatment, insurance, repairs, management, voids and other outgoings are not supplied.

Flip Analysis

A flip analysis is not supported. No commercial resale valuation, comparable evidence, refurbishment budget, selling costs or exit assumptions were supplied. The property is presented as an income investment with an existing lease rather than a refurbishment-led resale opportunity.

Investor Risks & Due Diligence

• VAT applies, but the amount and recoverability are unknown.

• The upper-floor sublet exists but its terms are unknown.

• Tenant covenant, rent-payment history and lease obligations are not supplied.

• Lease rent-review provisions and the precise meaning of the stated break information require verification.

• Buyer, administration, seller and other third-party charges are not quantified.

• Net yield cannot be calculated without operating costs and acquisition costs.

• No EPC, building condition, planning, repair or compliance information is supplied.

Recommendation

Consider as an income-holding commercial investment only, subject to satisfactory review of the lease, tenant covenant, rent evidence, upper-floor sublease, VAT position and Special Conditions. Do not rely on a residential or refurbishment exit strategy.

Strategy Rating

Analysis Confidence

The stated rent, lease expiry, tenure, tenant and guide range support a headline gross-yield calculation, but there is no comparable evidence, detailed lease information, cost schedule, VAT amount, building specification or upper-floor sublease detail.