Land at 83, Commercial Road, Southampton, Hampshire

Description

Two adjoining parcels of land measuring circa 1/3 acre in a town centre location, currently let for cruise parking. The land has B8 usage and additional 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 and Totton train station are within walking distance. Regular bus services are available nearby, with access to the M27 motorway.

Tenure / Property Information

Investment Analysis

The £375,000 guide is supported only as the auction guide, not as a formal market value. The supplied sales evidence includes 83 Commercial Road at £240,000 in 2021, but it is described only as “Other” and is not sufficient to value this larger development opportunity. The current £38,000 PA cruise-parking income provides an indicative gross yield of approximately 10.13% on the guide, before costs. No supported residential GDV, construction budget or development appraisal is supplied, so the scheme cannot be financially valued on the evidence provided.

Investment Snapshot

Strategy Recommendation

Treat the asset primarily as income-producing development land: verify the cruise-parking tenancy and all planning documentation before bidding, and retain the current use only if the tenancy is satisfactory. Do not proceed on a development basis without an independent GDV and full construction appraisal.

Works Required

Subject to planning documentation and conditions, the proposed works comprise conversion of the site from its current B8/cruise-parking use and construction of 9 apartments with associated parking and amenity space. No construction specification, condition report or cost plan is supplied.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR strategy cannot be quantified because no supported residential GDV, construction cost, finance cost or completed rental evidence is provided. The stated planning permission for 9 apartments may provide a development exit or refinance route, but planning conditions, viability, build costs and completed values require due diligence before bidding.

Buy-to-Let Analysis

This is development land rather than an individual residential BTL asset. The land is currently let for cruise car parking at £38,000 PA, equivalent to £3,166.67 PCM, producing approximately 10.13% gross on the £375,000 guide and 10.08% on the guide plus the known £1,800 buyer administration charge. These figures are based on the stated tenancy income, not external rental evidence, and exclude unknown seller fees, finance, tax, operating costs and tenancy-related risks.

Flip Analysis

A development flip appraisal cannot be completed reliably. The evidence confirms planning for 9 apartments but provides no supported GDV, build budget, professional fees, finance costs, contingency, sales costs or seller charges. Estimated flip surplus is therefore not calculated.

Investor Risks & Due Diligence

• The land is currently let for cruise car parking, but buyers are advised to make their own enquiries regarding the status of the tenancy.

• The supplied £38,000 PA is stated passing rent information for the current use and is not an external achieved-rent comparable.

• Additional seller fees may be payable on completion under the Special Conditions of Sale, but amounts are not supplied.

• The buyer is responsible for fees associated with the planning application; the amount is not supplied.

• No supported residential GDV, construction cost or viability appraisal is provided for the 9-apartment scheme.

• Planning permission is stated to have been granted, but the evidence does not provide the decision notice, conditions or implementation requirements.

Recommendation

Treat the asset primarily as income-producing development land: verify the cruise-parking tenancy and all planning documentation before bidding, and retain the current use only if the tenancy is satisfactory. Do not proceed on a development basis without an independent GDV and full construction appraisal.

Strategy Rating

Analysis Confidence

The current annual land income, guide price, tenure, planning description and buyer administration charge are supplied, but there is no supported residential GDV, build cost, planning-condition detail, external rental evidence or complete fee schedule.