Land at 83, Commercial Road, SOUTHAMPTON, Hampshire, SO40 3AF

Description

Parcel of land measuring circa 1/3 acre in town centre location, B8 usage and currently let for £38,000 PA, with additional planning for residential development. The two adjoining parcels are considered ideal for various commercial uses and have planning permission for residential development comprising 9 apartments with parking and amenity space.

Accommodation

Planning has been granted for conversion of the site into residential use and construction of 9 flats with parking and amenity space.

Location

Ideally situated in the heart of Totton town centre, directly opposite Totton Retail Park. Local amenities are within walking distance along with Totton train station. Regular bus services are available nearby, with access to the M27 motorway.

Tenure / Property Information

Investment Analysis

The £375,000 guide is above the supplied 2021 sale of 83 Commercial Road at £240,000, but the current asset has stated cruise-car-parking income and planning for 9 flats, so the transactions are not directly comparable. No GDV, build-cost, planning-condition or residential comparable evidence is supplied; therefore market value and development viability cannot be reliably established. The current passing rent is stated as £38,000 per annum, subject to verification of the tenancy and special conditions.

Investment Snapshot

Strategy Recommendation

Treat as a planning-led land acquisition with interim parking income, not as an underwritten residential development. Obtain and review the full planning consent, viability/build-cost appraisal, title and tenancy documents before bidding; proceed only if the price remains supported after those checks.

Works Required

If pursuing the consented scheme, works would involve the planned residential conversion/development of the two freehold parcels to provide 9 flats with parking and amenity space. Construction scope, abnormal costs, professional fees, planning obligations and associated planning fees are not supplied and require full due diligence.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot be completed because no supported GDV, construction budget, finance costs or refinance valuation is supplied. The stated 75% refinance calculation cannot be performed. Existing parking income may provide interim cash flow, but its durability depends on the tenancy documentation and planning/development timetable.

Buy-to-Let Analysis

The land is currently let for cruise car parking at a stated £38,000 per annum, equivalent to £3,166.67 per month. Against the £375,000 guide, this is a simple gross income yield of approximately 10.13%, before costs, finance and tax. This is not supported by external rental evidence, and the tenancy status, term, break rights, repairing obligations and continuity of income must be verified before relying on it.

Flip Analysis

A development flip cannot be underwritten from the supplied evidence. Planning for 9 flats is stated, but there is no GDV evidence, detailed consent information, build-cost estimate, programme, professional-fee allowance, finance cost or selling-cost allowance. The supplied residential sales are insufficient to value the proposed apartments.

Investor Risks & Due Diligence

• The current £38,000 per annum parking income and tenancy terms require verification.

• Additional seller fees may be payable under the Special Conditions of Sale.

• Planning, professional and associated planning fees are the buyer's responsibility.

• No development cost, GDV, finance or resale evidence is supplied for the proposed 9-flat scheme.

• The historic same-address sale at £240,000 in 2021 is not directly comparable with the current income-producing, consented development opportunity.

• The land comprises two freehold titles and title, access, servicing and development constraints require due diligence.

Recommendation

Treat as a planning-led land acquisition with interim parking income, not as an underwritten residential development. Obtain and review the full planning consent, viability/build-cost appraisal, title and tenancy documents before bidding; proceed only if the price remains supported after those checks.

Strategy Rating

Analysis Confidence

The guide price, freehold tenure, current stated rent, planning summary and one same-address historic sale are supplied, but there is no GDV, build-cost, detailed planning, tenancy or relevant residential rental evidence.