19-21 Promenade, Bridlington, North Humberside

Description

Freehold takeaway restaurant investment. Gross initial yield 7.69%. Comprises ground floor sales area with seating, WC facilities, a preparation area, and ancillary office and storage space. Total accommodation of approximately 209.03 sq m (2,250 sq ft). Prominent position on a busy retail and leisure street within the main shopping area. VAT is applicable.

Accommodation

Ground floor sales area with seating, WC facilities, preparation area, ancillary office and storage space; approximately 209.03 sq m (2,250 sq ft).

Location

Bridlington is a well established commercial centre on the north-east coast, approximately 24 miles north of Kingston upon Hull and 40 miles east of York. The property is situated on the west side of Promenade close to its junction with Marlborough Terrace. The Promenades Shopping Centre is located 60 meters from the property. Nearby occupiers include Boots, Greggs and Peacocks.

Tenure / Property Information

Investment Analysis

The property is a freehold commercial takeaway investment occupied by DP Realty Ltd (t/a Domino's) under a lease stated to expire in 2037 with no breaks and rent reviews in 2027 and 2032. The guide is £260,000–£280,000 and the supplied marketing information states a gross initial yield of 7.69%, but no passing rent or rent basis is provided, so the yield cannot be independently validated. Sold evidence on Promenade ranges from £135,000 to £350,000 between 2010 and 2024, but the comparables are mixed property types, dates and sizes and do not support a reliable valuation of this investment. VAT is applicable and buyer/admin costs are not supplied.

Investment Snapshot

Strategy Recommendation

Consider only as a commercial income investment after verifying the lease, passing rent, rent-review provisions, tenant covenant, VAT treatment and all acquisition costs. Do not bid on yield assumptions alone.

Works Required

No refurbishment works or defects are evidenced. The property comprises an existing takeaway sales, preparation, office, storage and ancillary accommodation; only routine operational maintenance should be considered pending inspection and lease review.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment is not supportable because no passing rent, reliable market value/GDV, refurbishment budget, finance costs or buyer/admin charges are provided. The long stated lease term may support investment value, but the lease, tenant covenant, rent and review mechanics require verification before considering refinancing.

Buy-to-Let Analysis

This is a commercial investment rather than a residential BTL property. A gross initial yield of 7.69% is stated, but the passing annual rent and the price to which that yield applies are not supplied. Consequently, annual income, guide-price yield and net yield cannot be calculated or independently assessed.

Flip Analysis

A flip appraisal is not supportable. No refurbishment requirement, resale valuation or selling-cost allowance is evidenced. The supplied Promenade comparables are too mixed and dated to establish a reliable resale GDV.

Investor Risks & Due Diligence

• Passing rent is not supplied, so the stated 7.69% gross initial yield cannot be independently checked.

• VAT is applicable, but the VAT amount and recoverability position are not supplied.

• Lease details beyond expiry in 2037, no breaks and review years are not provided; review terms and repairing obligations require verification.

• Tenant covenant and ongoing trading performance are not evidenced.

• No buyer premium, administration charge or other acquisition cost amounts are supplied.

• The available sold comparables are mixed property types and dates and may not be directly comparable.

• No condition report, EPC or refurbishment assessment is supplied.

Recommendation

Consider only as a commercial income investment after verifying the lease, passing rent, rent-review provisions, tenant covenant, VAT treatment and all acquisition costs. Do not bid on yield assumptions alone.

Strategy Rating

Analysis Confidence

The property type, lease headline, guide range, floor area, stated yield and some local sold evidence are supplied, but the passing rent, valuation basis, condition, EPC, lease terms, VAT amount and buyer costs are unavailable.