77-79 Kings Road, Reading

Description

A prominent corner building comprising a ground floor shop as well as two self-contained split-level two bedroom flats above. Benefiting from development potential for a 5/6 storey residential scheme, subject to the requisite consents. Investment let at £71,700 p.a.

Accommodation

GF shop and 5 bedroom flat: approximately 2,680 sq ft (249 sq m). 2 bedroom split-level maisonette: approximately 861 sq ft (80 sq m). Total: approximately 3,541 sq ft (329 sq m).

Location

Situated on Kings Road at its junction with Duncan Place, approximately 0.5 miles east of Reading town centre. The surrounding area comprises a mix of commercial and residential uses, with local shops and amenities nearby. Reading Station is approximately 0.5 miles from the property and provides National Rail and Elizabeth line services.

Tenure / Property Information

Investment Analysis

The £950,000 guide implies a gross income yield of approximately 7.55% against the stated £71,700 per annum rent. The property is a substantial freehold mixed-use investment with approximately 3,541 sq ft and development potential for a 5/6 storey residential scheme, subject to the requisite consents. The supplied sold comparables are historic residential transactions from 2001–2007 and do not provide reliable current evidence for this mixed-use asset or its development value. No supported GDV or refurbishment valuation can therefore be established. The stated income is supported as passing rent, but the buyer fee, VAT position and other seller charges remain unspecified.

Investment Snapshot

Strategy Recommendation

Prioritise income-led acquisition appraisal and legal due diligence rather than underwriting the development potential. Proceed only if the leases, break rights, tenant covenant, rent evidence, VAT position, auction charges and planning prospects support the guide price.

Works Required

No specific refurbishment defects or works are evidenced. Any 5/6 storey residential redevelopment would require planning and other requisite consents; no development budget can be supported from the supplied evidence.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot be completed reliably because no supported GDV, refurbishment cost, refinance valuation or buyer/admin fee is available. The existing income may support an investment hold, but the Year 5 mutual break and periodic residential tenancy require review before relying on long-term income or refinance assumptions.

Buy-to-Let Analysis

At the £950,000 guide, the stated £71,700 annual rent equates to approximately 7.55% gross before finance, operating costs, taxes and acquisition costs. The income comprises a shop and 5-bedroom flat let to YY Supermarkets Ltd on a 15-year lease from October 2022, subject to a mutual break in Year 5, plus a two-bedroom flat on a periodic tenancy. No external rental comparables or detailed lease and cost information were supplied, so net yield and income sustainability cannot be established.

Flip Analysis

A flip calculation is unsupported. Although development potential for a 5/6 storey residential scheme is stated, the necessary consents, scheme details, construction costs, sales values, programme and selling costs are not provided. The historic sold comparables are not sufficient evidence for a current resale or development GDV.

Investor Risks & Due Diligence

• The shop and 5-bedroom flat lease includes a mutual break clause in Year 5.

• The two-bedroom flat is let on a periodic tenancy, creating uncertain income duration.

• The buyer fee is unspecified and VAT or other seller charges may apply.

• The stated 5/6 storey residential development potential is subject to requisite consents and is not supported by a planning consent or financial appraisal.

• No sufficiently specific external rental comparable or current relevant sold comparable was supplied.

• The supplied income does not establish a net yield because operating costs, finance costs and other acquisition costs are unknown.

Recommendation

Prioritise income-led acquisition appraisal and legal due diligence rather than underwriting the development potential. Proceed only if the leases, break rights, tenant covenant, rent evidence, VAT position, auction charges and planning prospects support the guide price.

Strategy Rating

Analysis Confidence

The passing rent, tenure, occupancy, accommodation and headline tenancy information are supplied, but there is no current relevant valuation evidence, external rental evidence, refurbishment budget, GDV, detailed cost schedule or confirmed auction charges.