42 Quay Street, Newport, Isle Of Wight, PO30 5BA

Description

Town centre office building with parking, located in the heart of Newport town centre. The two-storey building was originally constructed as a chapel and has more recently been used as offices. It extends to over 3,500 sq.ft. (325 sq.m) and is offered for sale with vacant possession. It may suit continued use as offices, perhaps as a multi-let business centre, or conversion to residential accommodation subject to all necessary consents.

Accommodation

Open plan office accommodation across both floors, with partitioning providing a variety of different size rooms and W.Cs on both floors. The current tenant has access to their portion of the building via a separate rear access.

Location

Located in the heart of the centre of the County town of Newport, Isle of Wight.

Tenure / Property Information

Investment Analysis

The guide range of £170,000–£190,000 is materially below the subject property's recorded £386,574 sale in September 2023, although that transaction is historic and the evidence does not confirm the same condition, specification or market circumstances. Other Quay Street sales range from £222,000 to £450,000, but these are mainly terraced properties and are not directly comparable to a vacant office building. The building's commercial value is therefore supported by the direct sale evidence, but conversion or alternative-use value cannot be established without planning, viability and condition information. A broad evidence-led value range is £310,000–£450,000, with £386,574 used as the base scenario.

Investment Snapshot

Strategy Recommendation

Investigate as a vacant commercial hold or office/business-centre repositioning opportunity, subject to survey, planning, demand and letting evidence. Do not underwrite residential conversion or income yield without further evidence.

Works Required

No specific defects or required works are evidenced. Allow for surveys and due diligence, confirmation of statutory compliance, and any necessary maintenance or office reconfiguration. Residential conversion or multi-let business-centre works should not be assumed without the required consents and feasibility assessment.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy is potentially relevant only as a commercial acquisition and refinance project, but no refurbishment budget, commercial rent, finance terms or refinance valuation evidence is supplied. The 75% illustrative refinance of the base GDV is £289,930.50, but cash left in cannot be calculated because total project cost is unknown.

Buy-to-Let Analysis

This is a vacant office building rather than an evidenced residential buy-to-let asset. The £1,625 pcm rental listing is not identified as comparable office or commercial rent and cannot be used to calculate a reliable commercial yield. Passing rent is absent, so BTL yield and income coverage cannot be established.

Flip Analysis

A resale case is supported directionally by the direct subject sale at £386,574 and other Quay Street sales up to £450,000. However, refurbishment costs, acquisition costs, selling costs and VAT or other payable charges are not quantified, so a reliable flip surplus or maximum bid cannot be calculated.

Investor Risks & Due Diligence

• The property is vacant and no passing commercial rent is provided.

• The £1,625 pcm rental evidence is an unspecified asking rent and is not sufficient evidence for office or residential income.

• Residential conversion and multi-let use are subject to necessary consents and have not been established.

• Refurbishment and compliance costs are unknown.

• Administration, search, other non-optional fees, VAT, Stamp Duty and Land Registry costs may be payable but are not quantified.

• The comparable sales vary significantly and are not all directly comparable to a vacant office building.

• The recorded direct sale is from 2023 and may not represent current market value.

Recommendation

Investigate as a vacant commercial hold or office/business-centre repositioning opportunity, subject to survey, planning, demand and letting evidence. Do not underwrite residential conversion or income yield without further evidence.

Strategy Rating

Analysis Confidence

The property description, tenure, vacancy, guide and several completed sales are supplied, including a direct historic sale. However, there is no condition report, commercial rent, refurbishment budget, planning evidence, buyer fee, VAT position, selling cost or finance information.