30 Mary Ann Street, Birmingham, West Midlands

Description

A leasehold commercial investment opportunity located in the basement of 30 Mary Ann Street, an impressive former Georgian townhouse, having a dedicated entrance on Mary Ann Street and producing £34,728.75 P/A (no VAT) held on a 6 year term 28/09/2022 - 27/09/2028 trading as a Thai restaurant. The premises extend circa 2960sq ft (valuation Office figures).

Accommodation

Basement commercial premises extending circa 2960 sq ft, with a dedicated entrance on Mary Ann Street.

Location

The property sits on Mary Ann Street on the corner of St Pauls Square, giving it one of the most sought after locations within the city. The local area comprises a vibrant mix of restaurants, bars, offices and apartments.

Tenure / Property Information

Investment Analysis

The £175,000 guide equates to a headline gross income yield of approximately 19.85% on the stated passing rent of £34,728.75 per annum. However, no completed sales, external rental comparables, capitalisation rate or formal valuation evidence is supplied, so market value, GDV and a defensible maximum bid cannot be established. The current ground rent is understood to be £1,050 per annum based on the stated escalation schedule and lease dates, producing income before other costs of approximately £33,678.75 per annum.

Investment Snapshot

Strategy Recommendation

Consider only as a commercial income investment, subject to legal-pack review, tenant covenant assessment, confirmation of the ground-rent position and satisfactory lease-extension or exit analysis. Do not rely on a flip or BRRR strategy without independent valuation evidence.

Works Required

No refurbishment or repair works are identified in the supplied evidence. The property is let and trading as a Thai restaurant. Any works, compliance requirements or reinstatement obligations should be verified in the lease and legal pack.

Rental & Market Context

Potential BRRR Position

BRRR analysis cannot be established because no GDV, valuation evidence, refurbishment requirement or refinance terms are supplied. The 59 years remaining on the head lease may also affect refinanceability and exit value.

Buy-to-Let Analysis

This is a commercial leasehold investment rather than a residential BTL. The stated passing rent is £34,728.75 per annum, equivalent to approximately £2,894.06 per month, giving a gross yield of 19.85% on the guide and 19.34% including the stated 2.6% buyer premium. After the stated current £1,050 ground rent, income before other costs is approximately £33,678.75 per annum. The tenant's underlease runs to 27/09/2028, so renewal, rent continuity and tenant covenant require review.

Flip Analysis

A flip appraisal is not supported. No completed sales, GDV, refurbishment budget or selling-cost allowance is provided. The property is currently let and trading, so the evidenced investment case is income-led rather than refurbishment-led.

Investor Risks & Due Diligence

• The underlease has approximately 59 years remaining, which may restrict value, financeability and resale.

• The tenant's stated term ends on 27/09/2028; renewal and income continuity are uncertain from the supplied evidence.

• Tenant covenant, trading performance and rent-payment history are not supplied.

• Ground rent escalates under the stated schedule, reaching £2,100 and then £4,200 in later periods.

• Additional fees may be included in the Special Conditions of Sale and are not quantified.

• No completed sales or sufficiently specific external rental comparables are supplied to validate the guide price or market value.

Recommendation

Consider only as a commercial income investment, subject to legal-pack review, tenant covenant assessment, confirmation of the ground-rent position and satisfactory lease-extension or exit analysis. Do not rely on a flip or BRRR strategy without independent valuation evidence.

Strategy Rating

Analysis Confidence

Passing rent, lease terms, tenure, floor area, guide price and buyer premium are supplied, but there are no sales comparables, external rental comparables, EPC, formal valuation, refurbishment scope, finance terms or full legal-pack costs.