39 Unicorn Hill, Redditch, Worcestershire, B97 4QR

Description

A freehold town centre retail investment. Current gross rent: £15,000 per annum.

Accommodation

Two-storey mid-parade property comprising a ground floor retail shop and ancillary accommodation to the first floor. Ground Floor: retail shop extending to 638 sq. ft. (59.3 sq m). First Floor: offices, storage and staff WC’s – 331 sq. ft. (30.8 sq m). Total – 969 sq. ft. (90.1 sqm).

Location

39 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

The property is a freehold, occupied town-centre retail investment producing stated gross rent of £15,000 per annum. The supplied comparable evidence includes sales on Unicorn Hill at £135,000 and £170,000, but the comparable accommodation, condition, tenancy and investment terms are not provided, so a defensible GDV range cannot be established. At the £115,000 guide, the rent equates to approximately 13.0% gross before acquisition costs. Including the stated £2,700 administration charge, the at-guide gross yield is approximately 12.7%.

Investment Snapshot

Strategy Recommendation

Consider only as an income-led commercial freehold investment, subject to satisfactory review of the lease, tenant covenant, rent review and legal pack. Do not rely on a flip or BRRR strategy without independent valuation and cost evidence.

Works Required

No refurbishment works are evidenced in the supplied information. The property is occupied throughout and has an EPC rating of D, valid until 2 December 2031. Confirm condition, repairing obligations and any required works through inspection and the legal pack.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot be completed reliably because no supported GDV, refurbishment budget or refinance valuation is available. The existing tenancy may support income-led ownership, but the break clause, rent review and tenant covenant require legal and commercial due diligence.

Buy-to-Let Analysis

This is a commercial retail investment rather than a residential BTL. The stated current gross rent is £15,000 per annum under a 10-year lease from 4 April 2026, subject to a break clause and rent review on 3 April 2031. At the £115,000 guide, the gross yield is approximately 13.0%, reducing to 12.7% after the known £2,700 administration charge. Net yield cannot be calculated because operating costs, insurance, maintenance, voids and other acquisition costs are not supplied.

Flip Analysis

A flip is not underwritten by the evidence. There is no supported subject-property GDV, refurbishment budget, selling allowance or resale evidence sufficiently comparable to the accommodation and tenancy. The existing occupied investment structure also does not evidence a straightforward vacant resale opportunity.

Investor Risks & Due Diligence

• The lease includes a break clause and rent review at 3 April 2031; the detailed provisions are not supplied.

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

• No specific external rental comparables or independent investment valuation are provided.

• Operating costs, insurance, maintenance, void assumptions, stamp duty and other completion costs are not supplied.

• VAT is applicable, although a TOGC is anticipated; the outcome and any additional legal-pack costs require confirmation.

• The property is occupied in its entirety, so condition and repairing obligations should be checked against the lease and inspection evidence.

Recommendation

Consider only as an income-led commercial freehold investment, subject to satisfactory review of the lease, tenant covenant, rent review and legal pack. Do not rely on a flip or BRRR strategy without independent valuation and cost evidence.

Strategy Rating

Analysis Confidence

The current rent, lease summary, guide price, administration charge and some nearby completed sales are supplied, but there are no specific rental comparables, subject condition details, operating costs, detailed lease provisions, valuation evidence or supported works budget.