7-11 North Street, Exeter, EX4 3QS

Description

The property comprises four buildings arranged as ground floor shops and upper parts requiring modernisation, on a site area of approximately 0.15 acres. Planning consent was granted for an extension to create an additional storey, conversion and internal alterations of the first, second and third floors to form nineteen flats.

Accommodation

Top Floor: ancillary accommodation. Second Floor: ancillary accommodation. First Floor: ancillary accommodation. Vacant Ground Floor Shop 7-8: retail premises. Vacant Ground Floor Shop 9: retail premises. Ground Floor Shop 11: let retail premises. Courtyard space. The approved residential scheme comprises 19 apartments with a proposed net internal area of approximately 1,365 sq m (14,539 sq ft). The three commercial units provide approximately 310 sq m (3,336 sq ft).

Location

Prominent position on North Street in the heart of Exeter city centre, close to the junction with High Street. Cathedral Yard, the Guildhall Shopping Centre, restaurants, bars, cultural attractions and city-centre amenities are within easy walking distance. Exeter is the principal commercial and administrative centre for Devon and has road and rail connections.

Tenure / Property Information

Investment Analysis

The £725,000+ guide is the only pricing evidence supplied. No completed sales comparables, GDV evidence, construction budget, residential rents or commercial valuation evidence are provided, so market value, development value and maximum bid cannot be reliably estimated. The property has planning consent for an additional storey and conversion of the upper floors into 19 flats, but the consent's deliverability and residual value cannot be assessed from the evidence supplied.

Investment Snapshot

Strategy Recommendation

Proceed only after independently verifying the planning consent, obtaining a detailed construction and professional-cost budget, and securing evidence for residential and commercial values/rents. On the supplied evidence alone, do not set a bid above the guide on an assumed development profit.

Works Required

Implement the granted extension to create an additional storey, convert and internally alter the first, second and third floors to form 19 flats, and modernise the existing upper accommodation. The evidence does not specify the required construction, services, compliance or fit-out works in sufficient detail to cost them.

Rental & Market Context

Potential BRRR Position

A BRRR assessment is not supportable because no GDV, refurbishment cost, completed residential rent, finance assumptions or valuation evidence is supplied. The existing Shop 11 income provides partial contracted cash flow, but the proposed 19-flat scheme and vacant commercial accommodation require substantial unquantified execution and letting assumptions.

Buy-to-Let Analysis

The only supported income is the existing Shop 11 IRI lease at £28,000 per annum until 11 March 2030. Against the £725,000 guide, this equates to approximately 3.86% gross before finance, tax, fees and works. The other commercial units and upper floors are vacant, and no sufficiently specific rental evidence is supplied, so an overall BTL yield cannot be established.

Flip Analysis

A flip or development resale surplus cannot be calculated. Although planning permission is stated for 19 flats with approximately 1,365 sq m proposed NIA and 310 sq m of commercial accommodation, there is no supported GDV, works allowance, professional-cost allowance, finance-cost allowance or selling-cost allowance.

Investor Risks & Due Diligence

• Planning consent may require conditions, technical approvals or further expenditure not described in the evidence.

• The upper floors and two commercial areas are vacant, creating unquantified conversion, letting and carrying-cost risk.

• Construction, professional, compliance and fit-out costs for the 19-flat scheme are not supplied.

• No residential or commercial rental comparables are available to support projected income.

• The seller may charge additional completion fees under the special conditions, but the amount is not supplied.

• Shop 11 income is only contracted until 11 March 2030 and represents one unit rather than the whole property.

• The 10% deposit requirement and buyer premium create an immediate cash requirement; the stated buyer premium is £1,500 inclusive of VAT.

Recommendation

Proceed only after independently verifying the planning consent, obtaining a detailed construction and professional-cost budget, and securing evidence for residential and commercial values/rents. On the supplied evidence alone, do not set a bid above the guide on an assumed development profit.

Strategy Rating

Analysis Confidence

The evidence confirms tenure, occupancy, one commercial lease and the planning description, but provides no comparables, GDV, development-cost estimate, residential rents, commercial valuation or detailed special-condition costs.