56-60 Hamilton Road, Felixstowe, Suffolk

Description

Freehold and leasehold town centre supermarket investment let to Iceland Foods Ltd, with total accommodation of approximately 845.39 sq m (9,100 sq ft), a rear car park with 10 spaces, and a popular seaside resort town centre location. VAT is applicable.

Accommodation

Total accommodation approximately 845.39 sq m (9,100 sq ft).

Location

Felixstowe is a seaside resort and port town on the north coast of Suffolk, approximately 11 miles south-east of Ipswich and 78 miles north-east of London. The property is in the heart of the town centre, fronting the east side of Hamilton Road and west side of Victoria Street, between the junctions with Orwell Road and Cobbold Road. Felixstowe Rail Station is approximately 0.5 miles away. Nearby occupiers include Caffe Nero, Peacocks, EE, Superdrug, Poundstretcher, Clarks, Nationwide, Costa Coffee, Holland & Barrett and Boots.

Tenure / Property Information

Investment Analysis

The £450,000+ guide is not a formal valuation. The only supplied comparable is 52 Hamilton Road, sold for £380,000 in 2021; a further 2005 sale was £425,000. These are not sufficiently specific or current to establish a supported value for this larger supermarket investment. No passing rent, yield evidence, valuation or auctioneer rent estimate is provided. VAT is applicable and the front lease carries a current £17,350 p.a. ground rent, reviewable in 2036.

Investment Snapshot

Strategy Recommendation

Treat as a commercial income-investment acquisition only after verifying the leases, passing rent, tenant covenant, VAT position, ground-rent liability and independent valuation. Do not rely on the guide as evidence of value.

Works Required

No refurbishment works are evidenced. The property is described as let and recently renewed; obtain inspection, lease, repair and compliance information before assuming no works are required.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR analysis cannot be completed because no supported purchase cost beyond the guide, refurbishment allowance, passing rent, valuation or refinance terms are provided. The leasehold/freehold structure, VAT and 2031(2) lease expiries require detailed due diligence before considering refinance.

Buy-to-Let Analysis

This is a commercial supermarket investment rather than a residential BTL. The tenant is stated to be Iceland Foods Ltd under two leases expiring in 2031(2), but no passing rent is supplied. Yield, affordability and investment value therefore cannot be established. The £17,350 p.a. ground rent on the front lease must also be reflected in the investment analysis.

Flip Analysis

A flip surplus cannot be calculated. No supported GDV, refurbishment budget, transaction costs or selling allowance is provided, and the supplied comparables are insufficiently specific for a resale valuation. The asset is described as an income investment let to Iceland Foods Ltd rather than a refurbishment opportunity.

Investor Risks & Due Diligence

• No passing rent or auctioneer rent estimate is supplied, preventing yield and income valuation analysis.

• The front lease has a current £17,350 p.a. ground rent with the next review on 18.05.2036.

• The two Iceland Foods Ltd leases are stated to expire in 2031(2), creating future renewal and vacancy risk.

• VAT is applicable, but no VAT treatment or recoverability assumptions are supplied.

• Buyer premium, administration charges and other seller or third-party costs are unspecified.

• The supplied comparable sales are limited, dated and not sufficiently specific to establish market value.

Recommendation

Treat as a commercial income-investment acquisition only after verifying the leases, passing rent, tenant covenant, VAT position, ground-rent liability and independent valuation. Do not rely on the guide as evidence of value.

Strategy Rating

Analysis Confidence

Key underwriting inputs are missing, including passing rent, valuation, EPC, buyer/admin fees, repair obligations, lease details and refurbishment requirements. The available sales evidence is limited and not sufficiently comparable.