Unit 4, 100-104 Pydar Street, Truro

Description

The property comprises a high yielding retail investment occupying a prime pedestrianised pitch. Arranged as a ground floor retail unit and associated upper parts, the property is fully let to Nationwide, a longstanding occupier of 25 years, on a recently renewed five year lease expiring 23.11.2029 and paying £56,000 per annum. Heads of Terms are agreed for a five year reversionary lease, to commence at the expiry of the current lease, therefore extending the term to expire 23.11.2034.

Accommodation

Ground floor retail unit and associated upper parts; 3,476 sq ft (322.92 sq m).

Location

Prime pitch fronting the pedestrianised Pydar Street, one of the principal retail streets in the heart of Truro. The street is characterised by national retailers including Boots, TK Maxx, New Look and Pandora.

Tenure / Property Information

Investment Analysis

The property is fully let to Nationwide Building Society at £56,000 per annum. The £475,000 guide implies a gross income yield of approximately 11.79% before buyer fees, VAT and other acquisition costs. The supplied Pydar Street sales are not sufficiently specific in size, accommodation or investment terms to support a formal GDV or market value estimate. No external rental comparables or auctioneer rent estimate were provided.

Investment Snapshot

Strategy Recommendation

Consider as an income-led commercial investment only after confirming the lease documentation, reversionary lease, VAT/TOGC treatment, EPC and all auction costs. Do not rely on the guide price as a formal valuation.

Works Required

No refurbishment works are evidenced. Undertake legal-pack, lease, EPC, VAT/TOGC and building-condition review before bidding.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR analysis cannot be completed reliably because no supported GDV, refurbishment budget or refinance valuation is available. The asset is an income-producing commercial investment rather than an evidenced refurbishment opportunity. Any refinance assessment should confirm lender treatment of the lease, tenant covenant, EPC and VAT position.

Buy-to-Let Analysis

The stated rent is £56,000 per annum and the guide price produces an attractive 11.79% gross yield before fees, VAT and finance. Income is supported by a longstanding Nationwide occupier, with the current lease expiring on 23.11.2029 and Heads of Terms agreed for a reversionary lease to 23.11.2034. Net yield cannot be established because operating costs, buyer fees and VAT treatment payable by the purchaser are not quantified.

Flip Analysis

A flip analysis is not supported. No refurbishment uplift, comparable investment valuation or selling-cost allowance has been provided, and the supplied sales are not sufficiently specific for a resale value estimate.

Investor Risks & Due Diligence

• Buyer fee is unspecified and excluded from the guide price.

• The property is elected for VAT; the amount and final treatment should be confirmed, notwithstanding the anticipated TOGC treatment.

• The reversionary lease is described as Heads of Terms agreed, not as an executed lease.

• No EPC rating is stated; the legal pack should be reviewed.

• No operating costs, service charge, insurance, repair obligations or net income figure are provided.

• The supplied sold comparables are not sufficiently specific to establish an investment market value.

Recommendation

Consider as an income-led commercial investment only after confirming the lease documentation, reversionary lease, VAT/TOGC treatment, EPC and all auction costs. Do not rely on the guide price as a formal valuation.

Strategy Rating

Analysis Confidence

Rent, tenant, tenure, lease dates, accommodation and guide price are supplied, but there is no specific investment valuation evidence, rental comparison, EPC, buyer fee, operating-cost or VAT amount.