Car Park Bakers Alley, High Street, Alton, Hampshire

Description

A freehold town centre car park comprising approximately 21 parking spaces. Two spaces currently generate £3,000 per annum under licence agreements, and three spaces are allocated to two existing commercial tenants. Letting the remaining 16 spaces at £1,500 per annum each would bring the total potential annual rental income to £27,000. ANPR parking management is currently in operation. The existing agreement allows the seller to terminate on completion of a sale. The property may offer scope for reconfiguration, individual space sales and residential development comprising multiple dwellings, subject to obtaining the necessary consents.

Accommodation

21 car parking spaces and associated hard standing area

Location

The property occupies a central position within Alton town centre, close to retail, leisure and hospitality amenities. Bakers Alley benefits from convenient access to the High Street and surrounding commercial areas. Alton railway station is within walking distance, and the town has road connections via the A31.

Tenure / Property Information

Investment Analysis

The £50,000 guide equates to approximately £2,381 per parking space before costs. Current licence income is £3,000 per annum, while the auctioneer estimates potential income of £27,000 per annum if all 16 vacant spaces are let at £1,500 per space annually. This implies gross income yields of 6.0% on current income and 54.0% on the stated full-occupancy estimate at the guide price. The supplied sold comparables are mainly high-street commercial properties and are not sufficiently comparable to establish a car-park GDV or market value. No capitalisation rate, individual-space sale evidence or development valuation is supplied.

Investment Snapshot

Strategy Recommendation

Consider as an income-led commercial parking investment only if legal due diligence confirms the licences, tenant allocations, ANPR arrangement and ability to let the vacant spaces. Do not underwrite residential development or individual-space sales without planning and market evidence.

Works Required

No refurbishment works are evidenced. The main work would be operational: review and, if appropriate, continue the ANPR parking-management arrangement, market the 16 vacant spaces and verify the condition, layout and legal status of the hard standing and spaces. Any reconfiguration, individual-space sales or residential development would require separate feasibility work and the necessary consents.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A conventional BRRR analysis cannot be completed because no GDV, capitalisation rate or refinance valuation is supplied. At the guide price, the asset has substantial stated income potential relative to purchase price, but refinancing capacity cannot be established. The seller's existing agreement can terminate on completion, and the legal pack should confirm the two licences, tenant allocations and parking-management arrangements.

Buy-to-Let Analysis

This is a commercial car park rather than a residential BTL asset, so the supplied £1,395 pcm two-bedroom rental listing is not relevant to its income assessment. At the guide price, current licence income of £3,000 per annum produces a 6.0% gross yield. The stated full-occupancy potential of £27,000 per annum produces a 54.0% gross yield, but this is an estimate dependent on letting all vacant spaces and is not passing rent.

Flip Analysis

A resale surplus cannot be calculated because no supported car-park GDV, individual-space sale evidence, development appraisal or selling allowance is supplied. Potential reconfiguration, individual-space sales and residential development are expressly subject to feasibility and consents, so they should not be relied upon in the base case.

Investor Risks & Due Diligence

• The £27,000 annual income is an auctioneer estimate rather than passing rent and depends on letting all 16 vacant spaces.

• The seller's existing parking-management agreement may terminate on completion.

• Two spaces are subject to annual licences and three spaces are allocated to existing commercial tenants; the legal position should be verified.

• Residential development, reconfiguration and individual-space sales require necessary consents and are not valued in this analysis.

• No buyer premium, administration charge or other acquisition costs are supplied.

• The supplied comparable sales are not sufficiently comparable to establish the car park's value.

Recommendation

Consider as an income-led commercial parking investment only if legal due diligence confirms the licences, tenant allocations, ANPR arrangement and ability to let the vacant spaces. Do not underwrite residential development or individual-space sales without planning and market evidence.

Strategy Rating

Analysis Confidence

The guide price, tenure, space count, current income and auctioneer income estimate are supplied, but there is no direct car-park comparable evidence, capitalisation rate, formal valuation, fee information, legal-pack detail or confirmed demand for the vacant spaces.