8-9 Canon Street, Aberdare, CF44 7AT

Description

The property comprises a high yielding, multi-let, retail investment with vacant upper parts and occupies a prominent corner pitch. It is arranged as two ground floor retail units with separately accessed first and second floors, let to two tenants and producing a gross rent of £18,500 per annum. The first and second floors have separate access from Whitcombe Street and offer potential for letting or conversion to alternative uses, subject to obtaining any requisite consents.

Accommodation

Number 8 Ground Floor - 645 sq ft (60 sqm); Number 9 Ground Floor - 1,722 sq ft (160 sqm); Number 8/9 First and Second Floors - 3,369 sq ft (313 sqm); Total - 5,737 sq ft (533 sqm)

Location

Prominent corner pitch with frontages to Canon Street and Whitcombe Street. Canon Street follows on from the pedestrianised Commercial Street and forms part of the principal retail amenity in Aberdare. Nearby occupiers include B&M, The Works and Greggs.

Tenure / Property Information

Investment Analysis

The evidence supports a current contracted gross rent of £18,500 per annum from two ground-floor retail units. At the £50,000 guide, this equates to a guide-price gross yield of 37.0%, before buyer fees, VAT, legal costs, finance, maintenance, voids and other operating costs. The first and second floors are vacant, but no rental evidence, condition information, valuation yield or alternative-use consent is supplied. The 2021 same-address leasehold sale at £12,000 is historic and insufficient by itself to establish current market value. No reliable GDV or maximum bid can therefore be established.

Investment Snapshot

Strategy Recommendation

Treat as an income-led commercial investment subject to legal-pack, lease, tenant-covenant, condition and upper-floor due diligence. Do not underwrite vacant-floor uplift or conversion value without evidence.

Works Required

No specific defects or works are evidenced. Investigate the condition, services, fire and access arrangements of the vacant first and second floors, and assess letting or conversion potential subject to any required consents. Allow for only evidenced works after inspection and review of the legal pack.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy cannot be reliably underwritten from the supplied evidence. No GDV, refurbishment budget, upper-floor rent, valuation yield or refinance terms are provided. The existing income may support an investment case, but the leasehold structure, vacant upper floors, lease terms and unknown acquisition costs require investigation before relying on refinancing.

Buy-to-Let Analysis

The existing two retail leases produce £18,500 per annum, equivalent to £1,541.67 per month gross. On the £50,000 guide alone, the gross yield is 37.0%. This is not a net yield and excludes the unstated buyer fee, possible VAT, legal costs, maintenance, insurance, voids, management and finance. The upper floors are vacant and no supported rental estimate is available for them. Lease expiry dates and tenant covenant risk require legal and commercial review.

Flip Analysis

A flip appraisal is not supportable because no current GDV, refurbishment cost, condition report, resale evidence or selling-cost allowance is supplied. The vacant upper floors may offer potential, but any letting or conversion depends on condition and required consents.

Investor Risks & Due Diligence

• Buyer fee is not stated and VAT may apply, so the true acquisition cost is unknown.

• The property is leasehold; lease length, rent review provisions, ground rent, service charges and other obligations require legal-pack review.

• The two ground-floor leases expire in 2030 and 2027, creating renewal, vacancy and re-letting risk.

• The first and second floors are vacant and have no supported rental evidence.

• Any alternative use or conversion of the upper floors is subject to condition, planning, building-control and other requisite consents.

• Gross rent is not the same as net income; operating, maintenance, insurance, management, legal and void costs are not supplied.

• Tenant covenant and payment history are not evidenced.

Recommendation

Treat as an income-led commercial investment subject to legal-pack, lease, tenant-covenant, condition and upper-floor due diligence. Do not underwrite vacant-floor uplift or conversion value without evidence.

Strategy Rating

Analysis Confidence

Existing rents, lease expiry dates, accommodation and guide price are supplied, but buyer fees, VAT treatment, condition, operating costs, upper-floor rent, valuation yield, GDV and consent information are absent.