15 - 23 Percy Street, Stoke-On-Trent, Staffordshire ST1 1NA

Description

An investment opportunity comprising four units fronting Percy Street within a parade of shops located on the ground floor of a four-storey period building centrally located in Hanley centre, along with the freehold interest of the upper floors which were previously sold on a long lease. Total current income £29,000pa.

Accommodation

Number 15 Percy Street: circa 1,984 sq.ft on the ground floor and extensive basement, fitted commercial kitchen, one ladies' toilet, two male toilets and a large seating area. Number 17 Percy Street: approximately 500 sq.ft, with two first-floor rooms used as a workshop and a roller shutter. Number 19 Percy Street: barbers shop. Number 21 Percy Street: mobile phone repair shop. Number 23 Percy Street: sold on a long leasehold.

Location

The units are located along Percy Street close to the junction with Stafford Lane and Piccadilly, a prime shopping area in Hanley centre which has undergone a large regeneration scheme in recent years. The units benefit from a large amount of passing trade.

Tenure / Property Information

Investment Analysis

The £225,000+ guide equates to approximately 7.76 times the stated £29,000 annual income and a 12.89% gross yield before the buyer premium. The supplied comparables are limited and not directly comparable: £275,000 for Number 15 in 2021, £205,000 for Number 21 in 2014 and £624,000 for Number 11 in 2016. They are historic and relate to individual properties or differing property types, so they do not support a reliable GDV or formal valuation for the entire interest. At guide, the 3.6% buyer premium is £8,100, before any special-condition costs.

Investment Snapshot

Strategy Recommendation

Consider as an income-led commercial hold at or below guide, subject to verifying the £29,000 income, lease documents, tenant covenant, payment history and the extent of the freehold interest. Do not underwrite a flip or refinance exit without a professional valuation.

Works Required

No specific refurbishment works are evidenced. The units are described as fitted and occupied or being prepared for occupation. Verify condition, services, kitchen, toilets, basement, roller shutter, leases and compliance before bidding; no works allowance has been included.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A refinance assessment cannot be reliably completed because no supported GDV, commercial valuation yield or lending terms are supplied. The stated income may support an investment valuation, but rolling leases, the new tenant at Number 15 and the long-lease position of Number 23 require verification before relying on refinance proceeds.

Buy-to-Let Analysis

This is a commercial investment rather than residential BTL. Using the stated current income of £29,000 per annum, the gross yield is approximately 12.89% at the £225,000 guide, reducing to approximately 12.44% including the calculated £8,100 buyer premium. The income is subject to tenant, lease and collection risk; no operating costs, rent review details or independent rent evidence are supplied.

Flip Analysis

A flip analysis is not supported. No refurbishment requirement, resale valuation, selling allowance or reliable whole-property GDV is provided. The historic comparables are insufficient to calculate a defensible resale surplus.

Investor Risks & Due Diligence

• Numbers 17 and 19 are occupied on rolling arrangements, creating lease-renewal and income-continuity risk.

• Number 15 has a new tenant working toward opening, so the stated income and trading position should be independently verified.

• Number 23 has been sold on a long leasehold, while the freehold interest relates to the upper floors previously sold on a long lease; the exact retained interest and income allocation require legal review.

• The stated £29,000 income is not broken down by unit and no passing-rent evidence or payment history is supplied.

• Additional fees may be listed in the Special Conditions of Sale and are not included in the calculated total cost.

• No condition, compliance, EPC, services or basement-specific inspection evidence is supplied.

Recommendation

Consider as an income-led commercial hold at or below guide, subject to verifying the £29,000 income, lease documents, tenant covenant, payment history and the extent of the freehold interest. Do not underwrite a flip or refinance exit without a professional valuation.

Strategy Rating

Analysis Confidence

The guide, buyer premium, stated income, occupancy summary and several historic comparables are supplied, but there is no formal valuation, detailed lease schedule, rent schedule by unit, operating-cost information, condition report, EPC or special-conditions detail.