18 St. Thomas' Square, Newport, Isle Of Wight, PO30 1SG

Description

This attractive three storey freehold building is situated in an attractive town centre location on St Thomas' Square in the centre of Newport, the Island's county town. Let under the terms of a commercial lease, the property is considered ideal for addition to an income-producing commercial property portfolio.

Accommodation

The accommodation extends to 102 sq.m. (1,098 sq.ft.). Ground floor: main sales/retail area and ladies' and gents' cloakrooms with W.Cs. First floor: a large landing at present in use as a store leading to office/further store room. Second floor: office/store room. The two floors are at present arranged as offices/store rooms.

Location

Situated on St Thomas' Square in the centre of Newport, the Island's county town, Isle of Wight.

Tenure / Property Information

Investment Analysis

The only directly matching completed sale is this property at £210,000 on 27 August 2004. A nearby comparable at 23 St Thomas Square sold for £172,600 on 17 April 2009. These historic transactions are too dated to establish a current GDV without further evidence. The property is currently let, but no passing rent, lease rent review details, lease obligations or guide price are supplied.

Strategy Recommendation

Consider only as a commercial income investment after verifying the executed lease, passing rent, rent reviews, tenant covenant, lease liabilities and all buyer charges. Do not bid or underwrite on the supplied evidence alone.

Works Required

No refurbishment works are evidenced. The building is described as an operating three-storey commercial property with retail accommodation, offices/store rooms and cloakrooms. Any works should be confirmed by inspection and review of the lease.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot be quantified. No purchase price, current rent, refurbishment budget, current valuation or finance terms are supplied. The property is let under a commercial lease, but the listing gives conflicting lease descriptions of 125 years and 25 years from 7 April 2006; the executed lease must be verified before valuation or refinancing.

Buy-to-Let Analysis

Residential BTL analysis is not applicable to this commercial investment. Commercial income analysis cannot be completed because the passing rent, rent review provisions, tenant covenant and lease liabilities are not supplied. The commercial rental listings provided are asking rents for unspecified properties and are not reliable evidence of this property's rent.

Flip Analysis

A flip appraisal cannot be established. Historic sale evidence includes this property at £210,000 in 2004, but no current GDV, acquisition price, selling allowance, transaction costs or refurbishment requirement is supported. The existing commercial tenancy may also affect resaleability and purchaser demand.

Investor Risks & Due Diligence

• No guide price or purchase price is supplied.

• No passing rent or rent review information is supplied, so income and yield cannot be calculated.

• The listing gives conflicting descriptions of a 125-year lease and a 25-year lease from 7 April 2006.

• Tenant covenant, lease obligations, repairing liability and other commercial lease terms are unknown.

• Additional administration, search, VAT, Stamp Duty and Land Registry costs may apply, but amounts are not supplied.

• Historic comparable sales are too dated to establish current market value.

• The supplied commercial rental figures are advertised asking rents for unspecified properties, not evidence of this property's achievable rent.

Recommendation

Consider only as a commercial income investment after verifying the executed lease, passing rent, rent reviews, tenant covenant, lease liabilities and all buyer charges. Do not bid or underwrite on the supplied evidence alone.

Strategy Rating

Analysis Confidence

The evidence confirms the property type, tenure, location, size and occupancy, but omits the guide price, passing rent, lease documentation, costs, condition evidence and current valuation support. The stated lease term is also internally inconsistent.