399 Shirley Road, Shirley, Southampton

Description

The property comprises a high yielding mixed use investment opportunity occupying a prominent pitch on a popular arterial route. Arranged as a ground floor retail unit with six flats to the rear and upper parts, the property is let to six tenants producing a combined rent of £67,120 per annum with one vacant flat offering asset management potential.

Accommodation

Ground floor retail unit and six flats: five studio flats and one two-bedroom flat. Flat 399c is currently vacant.

Location

Prominent pitch fronting Shirley Road, with access to the residential units via both the front and rear. Shirley Road forms an arterial route connecting Shirley and Central Southampton and follows on from Shirley High Street. The surrounding area is characterised by similar mixed uses, with nearby national retailers including JD Wetherspoon, Tesco and McDonalds.

Tenure / Property Information

Investment Analysis

The £625,000 guide price equates to an initial gross yield of approximately 10.74% on the stated combined annual rent of £67,120. No completed sales, formal valuation, GDV evidence, buyer costs, condition report or refurbishment budget has been supplied, so market value and maximum bid cannot be independently established. The vacant two-bedroom flat provides stated asset-management potential, but no rent estimate for it is supplied.

Investment Snapshot

Strategy Recommendation

Income-led hold, subject to verification of the rent roll, leases, tenant status, retail covenant, vacant-flat condition and all acquisition costs. Do not rely on an uplift or refinance strategy without valuation evidence.

Works Required

No physical defects or refurbishment requirements are evidenced. The supported opportunity is to assess, market and let vacant Flat 399c, subject to inspection, compliance checks and confirmation of achievable rent.

Rental & Market Context

Potential BRRR Position

A BRRR analysis cannot be completed because no GDV, valuation evidence, refurbishment allowance, finance terms or acquisition costs are supplied. The stated rent supports the income case, but a 75% GDV refinance figure and cash-left-in calculation are unavailable. Any uplift from letting Flat 399c remains unquantified.

Buy-to-Let Analysis

The property is partly let, with the retail unit and five flats occupied, producing stated combined rent of £67,120 per annum. At the £625,000 guide, the gross yield is approximately 10.74% before finance, management, maintenance, voids, taxes and acquisition costs. The vacant flat may provide additional income, but no supported rent for it is available. The retail lease runs to 05.05.2041 with five-yearly RPI-linked reviews; the residential units are on periodic tenancies.

Flip Analysis

A flip analysis cannot be supported because no completed comparable sales, GDV, condition assessment, refurbishment costs or selling-cost allowance has been provided. The property is presented primarily as an income-producing mixed-use investment rather than a documented refurbishment resale opportunity.

Investor Risks & Due Diligence

• The investment is mixed use, combining a retail unit with six residential flats.

• Flat 399c is vacant and its achievable rent is not evidenced.

• The five residential units are let on periodic tenancies, so occupancy and income may change.

• The retail income depends on the tenant and the terms of the stated long lease.

• Buyer premiums, administration charges and other acquisition costs are not supplied.

• No condition, compliance, EPC or refurbishment information is supplied.

• The stated £67,120 rent is an auctioneer-provided combined figure and has not been independently evidenced in the supplied material.

Recommendation

Income-led hold, subject to verification of the rent roll, leases, tenant status, retail covenant, vacant-flat condition and all acquisition costs. Do not rely on an uplift or refinance strategy without valuation evidence.

Strategy Rating

Analysis Confidence

The guide price, tenure, occupancy, lease information and combined rent are supplied, but there are no completed comparables, GDV, condition details, EPC information, buyer costs, refurbishment costs or rent evidence for the vacant flat.