9-11 Queen Street, Newton Abbot, Devon

Description

Comprising a three-storey commercial building operating as a youth sheltered care centre. Let to Sovereign Network Group on a 25-year lease expiring 2034 (no breaks) with RPI-linked rent reviews. Sublet to Young Devon at the passing rent, guaranteed by Devon County Council. Total accommodation extends to approximately 270 sq m (2,909 sq ft). VAT is not applicable.

Accommodation

Approximately 270 sq m (2,909 sq ft). Three-storey commercial building; the upper floors are occupied for sheltered care accommodation and the subtenant is not trading from the ground floor.

Location

Newton Abbot is an attractive South Devon market town located approximately 16 miles south-west of Exeter and 7 miles north-west of Torquay. The property is situated on the north side of Queen Street, close to its junctions with Courtenays. Nearby occupiers include Sports Direct, Go Outdoors, Lloyds Bank, NatWest, Specsavers, Loungers, Savers, JD Wetherspoon, Cancer Research UK, RSPCA, Betfred and many other national occupiers.

Tenure / Property Information

Investment Analysis

The £400,000+ guide implies a gross income yield of approximately 16.24% on the stated £64,954 annual passing rent. The supplied Queen Street comparables range from £210,000 to £410,000, but they are not sufficiently described or demonstrated as comparable to this three-storey, 2,909 sq ft care investment. A formal GDV or market value cannot therefore be established from the evidence alone.

Investment Snapshot

Strategy Recommendation

Consider as an income-led commercial investment, subject to review of the lease, sublease, guarantee, rent review provisions, title and all auction special conditions. Do not underwrite on the guide yield alone without confirming liabilities and costs.

Works Required

No refurbishment works are evidenced. Confirm condition, statutory compliance and any repair obligations under the lease and sublease before bidding.

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 refurbishment budget, formal GDV, valuation yield or refinance terms are supplied. The existing long lease, RPI-linked reviews and stated Devon County Council guarantee support income visibility, but refinance value remains unverified.

Buy-to-Let Analysis

This is a commercial care investment rather than a standard buy-to-let. The stated passing rent is £64,954 per annum, equivalent to £5,412.83 per month, producing an implied 16.24% gross yield against the £400,000 guide. Net yield cannot be calculated because operating costs, financing, purchaser costs and tax are not supplied.

Flip Analysis

A flip analysis is not supported by the evidence. No refurbishment cost, resale GDV, selling allowance or comparable evidence sufficiently specific to this care investment is available. The asset is primarily presented as an income-producing commercial investment.

Investor Risks & Due Diligence

• The lease expires in 2034, so income and residual value beyond that date require review.

• The investment depends on the lease, sublease and Devon County Council guarantee operating as described; the full legal documents have not been supplied.

• The upper floors are used for sheltered care accommodation, while the subtenant is not trading from the ground floor; use, compliance and future occupier risk should be checked.

• Additional seller or third-party charges may apply and are not quantified.

• Operating costs, repair liabilities, insurance, service charges and management costs are not supplied, so net income and net yield are unknown.

• The supplied sold comparables are nearby Queen Street transactions but are not sufficiently detailed to confirm comparability with this specialised care investment.

Recommendation

Consider as an income-led commercial investment, subject to review of the lease, sublease, guarantee, rent review provisions, title and all auction special conditions. Do not underwrite on the guide yield alone without confirming liabilities and costs.

Strategy Rating

Analysis Confidence

The passing rent, lease structure, occupancy, tenure, guide and some nearby completed sales are supplied. However, there is no formal valuation yield, detailed lease documentation, condition report, purchaser-cost schedule, EPC or operating-cost information.