45-51 Cheapside, Bradford

Description

A high-yielding mixed-use investment comprising 13,686 sq ft (1,271 sq m) of retail and office accommodation. The property is fully let, producing an income of £109,000 per annum. The office accommodation is fully let to The Secretary of State for Levelling Up, Housing and Communities. The property benefits from a basement car park providing nine parking spaces and comprises three retail units together with office accommodation on the upper floors. Fraternal House is a prominent office building in the heart of Bradford City Centre, situated on Cheapside directly opposite Bradford Forster Square Railway Station and the Midland Hotel.

Accommodation

13,686 sq ft (1,271 sq m) comprising three retail units and office accommodation on the upper floors.

Location

Located in Bradford City Centre on Cheapside, directly opposite Bradford Forster Square Railway Station and the Midland Hotel. The Broadway shopping centre is approximately 0.5 miles away.

Tenure / Property Information

Investment Analysis

The £850,000 guide equates to approximately 7.80 times the stated £109,000 annual rent and an implied gross yield of 12.82%, before buyer premium, VAT and other sale costs. The closest supplied comparable is 47-49 Cheapside, sold freehold for £675,000 in May 2024, but the evidence does not establish sufficient comparability in size, income, condition or tenancy profile. The 2017 Cheapside Chambers sale is historic and not directly conclusive. A reliable market value or GDV cannot be established from the supplied evidence.

Investment Snapshot

Strategy Recommendation

Consider as an income-led freehold hold rather than a flip or BRRR project, but proceed only after reviewing the tenancy schedule, legal pack, lease-renewal position, buyer premium, VAT treatment and all seller charges. Reprice if acquisition costs materially reduce the stated yield.

Works Required

No refurbishment works are identified in the supplied description. Allow for inspection, review of the legal pack and tenancy schedule, and any landlord obligations or lease-renewal works identified during due diligence; no works budget can be evidenced.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

BRRR cannot be reliably underwritten because no GDV, finance terms, refurbishment requirement or valuation evidence is supplied. A 75% refinance calculation is therefore unavailable. The existing income may support an income-led hold, subject to confirming leases, tenant covenant, rent security and the impact of all acquisition costs.

Buy-to-Let Analysis

The property is stated to be fully let at £109,000 per annum, equivalent to £9,083.33 per month. Against the £850,000 guide, the stated gross yield is approximately 12.82%. This is before the unspecified buyer fee, possible VAT, seller charges, finance, management, maintenance, insurance and void costs. The tenancy schedule and lease terms are essential to verify rent, expiry dates, repairing obligations and renewal risk.

Flip Analysis

A flip surplus cannot be calculated because no supported GDV, refurbishment budget or selling-cost allowance is available. The property is fully let and described as an income investment, so resale would depend heavily on investment valuation, lease quality and buyer appetite rather than a demonstrated refurbishment uplift.

Investor Risks & Due Diligence

• Buyer premium is additional to the guide price but its amount is unspecified.

• VAT may apply and other seller charges may be payable under the Special Conditions of Sale.

• The tenancy schedule and detailed lease terms have not been supplied, including expiry dates, repairing obligations, rent review provisions and renewal terms.

• The office accommodation is fully let to The Secretary of State for Levelling Up, Housing and Communities, but no detailed covenant or lease evidence is provided.

• Retail tenant details and lease security are not supplied.

• No EPC rating, condition assessment, operating-cost information or landlord expenditure is provided.

• The stated yield is gross and does not account for acquisition costs, finance, management, maintenance, insurance or voids.

• The supplied comparable evidence is limited and does not establish a reliable market value for this property.

Recommendation

Consider as an income-led freehold hold rather than a flip or BRRR project, but proceed only after reviewing the tenancy schedule, legal pack, lease-renewal position, buyer premium, VAT treatment and all seller charges. Reprice if acquisition costs materially reduce the stated yield.

Strategy Rating

Analysis Confidence

The guide price, stated annual income, accommodation, occupancy, tenure and two completed sales are supplied. However, buyer costs, VAT, lease details, EPC information, condition, operating costs and sufficiently comparable valuation evidence are missing.