8 High Street, Bonnybridge, Stirlingshire, FK4 1DA

Description

Commercial investment opportunity comprising a well-let, double-fronted commercial unit in a popular local parade. The property has been internally modernised and refurbished by the occupier, with an extensive refit. It is described as a turnkey, high-yielding investment and is VAT free according to the listing.

Accommodation

Circa 2,760 sq ft. Two ground-floor interlinked and symmetrical buildings used as a restaurant, with a licensed beer garden to the rear. Includes waiting areas, a new bar, extensive dining area with booth seating, office accommodation, and customer and staff welfare facilities.

Location

Bonnybridge, an established town in Central Scotland, lying astride the A803, approximately 4 miles west of Falkirk and 7 miles south of Stirling. Junction 1 of the M876 is approximately 1 mile to the north. Nearby occupiers include Scot-mid, William Hill, Ladbrokes, Premier and Dominos.

Tenure / Property Information

Investment Analysis

The £165,000 guide equates to an initial gross yield of approximately 12.12% on the stated contractual rent of £20,000 per annum. No completed sales, rental comparables, capitalisation rate, formal valuation or buyer premium amount is supplied, so market value, GDV and an evidence-supported bid ceiling cannot be established. The lease is stated to be new, full repairing and insuring, and commencing February 2024, with a tenant break at the fifth anniversary and an open market rent review at the third anniversary.

Investment Snapshot

Strategy Recommendation

Consider as an income-led commercial hold only after reviewing the legal pack, lease, tenant covenant, VAT position and all buyer premium or other charges. Do not underwrite a BRRR or flip strategy without independent valuation evidence.

Works Required

No specific works are identified. The property is described as internally modernised and refurbished by the occupier, with an extensive refit and turnkey presentation. Any future expenditure should be verified through inspection and the legal pack.

Rental & Market Context

Potential BRRR Position

A BRRR assessment cannot be completed reliably because there is no supported GDV, capitalisation rate, refurbishment budget or stated refinancing valuation basis. The existing lease and tenant occupation may support an income-led hold, but the tenant break at the fifth anniversary and unknown refinancing costs remain material considerations.

Buy-to-Let Analysis

This is a commercial letting rather than residential BTL. The stated contractual rent is £20,000 per annum, equivalent to approximately £1,666.67 per month, and rent is reported as up to date. At the £165,000 guide, the gross rent-to-guide yield is approximately 12.12%. Net yield cannot be calculated because the buyer premium, acquisition costs, operating costs, insurance position and financing costs are not supplied. No external rental comparable is available.

Flip Analysis

A flip/resale surplus cannot be established. The property is described as already modernised and refurbished, but no resale valuation, comparable evidence, selling allowance or project cost is supplied. Commercial resale value would require an appropriate investment valuation and confirmation of lease terms and purchaser demand.

Investor Risks & Due Diligence

• Tenant break option at the fifth anniversary could affect income continuity and investment value.

• Buyer premium and any additional charges are not quantified, so the true acquisition cost is unknown.

• No tenant covenant, financial strength or lease security information is supplied beyond rent being reported as up to date.

• No independent market valuation, capitalisation rate or comparable evidence is supplied.

• Open market rent review at the third anniversary may not produce the assumed rental outcome.

• The claimed VAT-free status should be verified in the legal pack and transaction documentation.

Recommendation

Consider as an income-led commercial hold only after reviewing the legal pack, lease, tenant covenant, VAT position and all buyer premium or other charges. Do not underwrite a BRRR or flip strategy without independent valuation evidence.

Strategy Rating

Analysis Confidence

The contractual rent, guide price, lease structure, occupancy and property description are supplied, but there are no sold comparables, rental comparables, formal valuation, EPC, operating costs, buyer premium amount or refurbishment budget.