35 Unicorn Hill, Redditch, Worcestershire

Description

A freehold town centre retail investment comprising a two-storey mid-parade property with ground floor retail shop and ancillary accommodation to the first floor. Current gross rent: £16,000 per annum.

Accommodation

Ground Floor: Retail shop extending to 758 sq. ft. (70.39 sq. m). First Floor: Offices, storage and staff WCs extending to 617 sq. ft. (57.42 sq. m). Total: 1,375 sq. ft. (127.81 sq. m).

Location

35 Unicorn Hill occupies a prominent town centre position, close to the Kingfisher Shopping Centre, Redditch Railway Station and the town's principal retail and leisure facilities. The surrounding area comprises a strong mix of national and independent retailers, restaurants, professional offices and civic uses.

Tenure / Property Information

Investment Analysis

Indicative GDV range of £135,000–£170,000, with a £152,500 base case derived from the two most relevant supplied Unicorn Hill freehold sales (£135,000 and £170,000). These comparables differ in described property type and no floor areas or investment yields are supplied, so this is only a low-confidence market indication. The £16,000 passing rent represents a gross yield of 13.91% on the £115,000 guide before the £2,700 administration charge.

Investment Snapshot

Strategy Recommendation

Consider as an income-led commercial investment rather than a flip, subject to confirming the lease, tenant covenant, rent payment history, repair liabilities, title and special conditions. Bid discipline is essential because taxes, finance and any additional legal-pack costs are not quantified.

Works Required

No refurbishment works or defects are evidenced. The analysis therefore includes no works allowance, subject to legal-pack review and inspection.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £115,000 guide plus the £2,700 administration charge, the indicative total cost is £117,700, assuming no works allowance. A 75% refinance against the £152,500 base GDV would be approximately £114,375, leaving indicative cash in of £3,325 before finance, tax and other costs. The refinance outcome is highly dependent on lender treatment of the commercial tenancy, valuation and lease expiry.

Buy-to-Let Analysis

The property is fully let at a passing rent of £16,000 per annum, equivalent to £1,333.33 pcm. This produces a 13.91% gross yield on the £115,000 guide and 13.59% including the known £2,700 administration charge, before finance, tax, insurance, repairs and other ownership costs. The lease runs to 09/07/2028; tenant covenant and lease obligations require legal review.

Flip Analysis

A resale analysis is not robust because the property is tenanted, no selling costs are supplied, and the comparable evidence is limited and heterogeneous. Against the £152,500 base GDV, the indicative gross margin before selling costs would be £34,800 against the guide plus known administration charge, but this is not a reliable flip surplus.

Investor Risks & Due Diligence

• The existing tenancy expires on 09/07/2028, creating renewal, reletting and potential vacancy risk.

• Tenant covenant, rent payment history and lease compliance information are not supplied.

• The market evidence is limited to sales with differing described property types and no supplied floor-area or yield comparison.

• Additional costs may be stated in the Special Conditions; VAT treatment is anticipated as TOGC but is not guaranteed.

• Stamp duty and government taxes are excluded from the supplied administration fee and calculations.

• The analysis excludes finance, insurance, repairs, management, tax and selling costs.

Recommendation

Consider as an income-led commercial investment rather than a flip, subject to confirming the lease, tenant covenant, rent payment history, repair liabilities, title and special conditions. Bid discipline is essential because taxes, finance and any additional legal-pack costs are not quantified.

Strategy Rating

Analysis Confidence

Passing rent, lease term, guide price, administration charge, accommodation and two relatively close same-street freehold sales are supplied. However, the sales are not fully comparable, no condition or operating-cost data is provided, tenant covenant is unknown, and VAT, taxes, special-condition costs and finance assumptions remain unresolved.