Birmingham Co-op, Gorse Farm Road, Birmingham, West Midlands

Description

Modern freehold convenience store investment comprising a convenience store totalling approximately 422 sq m (4,542 sq ft), in a prominent corner position in a densely populated residential area. Gross initial yield stated as 7.41%. VAT is applicable.

Accommodation

Convenience store totalling approximately 422 sq m (4,542 sq ft).

Location

Hamstead is a residential suburb at the border of Birmingham and Sandwell, approximately 5 miles north-west of Birmingham City Centre and 4 miles east of West Bromwich. The area benefits from road connections via the nearby A34, providing access to Birmingham City Centre, Junction 7 of the M6 motorway and Walsall. Hamstead Railway Station is approximately 1 mile south-east and provides regular services to Birmingham New Street, with a journey time of approximately 15 minutes. The property is in a prominent position on the west side of Gorse Farm Road at its junction with Langford Avenue, in a predominantly residential area.

Tenure / Property Information

Investment Analysis

The guide range is £775,000–£825,000 for a modern freehold convenience store let to Co-operative Group Food Limited. The stated gross initial yield is 7.41%, but the passing rent and rent basis are not supplied, so the yield and guide cannot be independently verified. The supplied sold comparables are residential houses and are not relevant to valuing this commercial investment. VAT applies and additional seller or third-party charges may be payable.

Investment Snapshot

Strategy Recommendation

Consider only as a long-term commercial income investment after confirming the passing rent, VAT treatment, lease documentation, tenant covenant, repairing obligations and all auction costs. Do not set a bid limit from the supplied evidence alone.

Works Required

No refurbishment works are evidenced. Undertake inspection and review the lease, title, service arrangements, repair obligations and compliance documents before bidding; no works allowance can be quantified from the supplied evidence.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR analysis cannot be completed because no supported rent, GDV, refurbishment cost, finance cost or buyer/admin cost is provided. Refinance proceeds cannot be estimated without an evidence-supported valuation or rent-based capitalisation assessment.

Buy-to-Let Analysis

This is a commercial let investment rather than a residential BTL. The tenant, lease expiry in 2036, no-break provision and CPI-linked rent reviews with a 1–3% annual collar and cap are stated. However, the actual passing rent is absent, so rent cover, income and yield cannot be calculated. VAT and unspecified additional charges also need confirmation.

Flip Analysis

A flip analysis is not supported by the evidence. No commercial resale valuation, refurbishment budget, selling allowance or relevant commercial comparable is supplied. The residential sold comparables should not be used for this property.

Investor Risks & Due Diligence

• Passing rent is not supplied, preventing independent verification of the stated 7.41% gross initial yield.

• VAT is applicable and may materially affect the acquisition funding requirement and effective return.

• Additional seller or third-party charges may be payable but are unspecified.

• The lease expires in 2036; no breaks are stated, but future reletting or renewal terms are not evidenced.

• No condition, EPC, repair liability, service-charge or compliance information is supplied.

• The provided sold comparables are residential and do not establish commercial market value.

Recommendation

Consider only as a long-term commercial income investment after confirming the passing rent, VAT treatment, lease documentation, tenant covenant, repairing obligations and all auction costs. Do not set a bid limit from the supplied evidence alone.

Strategy Rating

Analysis Confidence

The property type, tenant, lease structure, guide range and stated yield are supplied, but passing rent, commercial valuation evidence, EPC, costs, condition and auction charges are missing.