Units 45 & 45a, 45 Neilsland Road, Hamilton, Lanarkshire, ML3 8NA

Description

VAT-free investment opportunity comprising a detached building of traditional construction with a public house and betting office. The property extends to approximately 4,100 sq ft in total and is advertised with combined annual rent of £26,000 and a stated 9.8% yield.

Accommodation

Public house with bar, customer seating, customer and staff welfare facilities, small kitchenette/storage area and basement extending to the entire demise. Betting office with open-plan sales area and corporate branding. The public house has wallpapered ceilings with pendant lighting, plaster/painted walls and laminate/carpet flooring. The betting office has suspended tile-grid ceilings with recessed spot and box lighting and tiled flooring.

Location

Located in the Fairhill district of Hamilton on the north-east side of Neilsland Road, approximately 2 miles south-west of Hamilton Town Centre. The surrounding area is primarily residential, with nearby occupiers including the Community Centre, Fairhill Takeaway and Premier Convenience Store. Hamilton Central Railway Station is approximately a 5-minute drive away. Hamilton is in South Lanarkshire, approximately 9 miles south-east of Glasgow and 37 miles south-west of Edinburgh, with access from Junction 6 of the M74 motorway.

Tenure / Property Information

Investment Analysis

Commercial investment comprising a public house and betting office, approximately 4,100 sq ft, let to William Hill on new 15-year full repairing and insuring leases commencing March 2024. The advertised combined annual rent is £26,000. At the £300,000 guide, the calculated gross yield is approximately 8.67%, which differs from the stated 9.8% yield. No completed sales, external rental comparables, GDV or formal valuation evidence was supplied. Calculations below use the guide price and advertised rent only and exclude the unknown Buyer’s Premium and any other applicable charges.

Investment Snapshot

Strategy Recommendation

Consider as a commercial income-hold investment only, subject to reviewing the leases, break provisions, rent review terms, legal pack and all buyer charges. Do not rely on the stated 9.8% yield without reconciling its calculation.

Works Required

No specific refurbishment works or defects are identified in the supplied evidence. The leases are stated to be full repairing and insuring, but lease obligations and any immediate maintenance requirements should be verified in the legal pack.

Rental & Market Context

Potential BRRR Position

A BRRR analysis cannot be quantified because no evidence-supported GDV, refurbishment budget, valuation or lending terms were supplied. At the guide, the property produces an indicative 8.67% gross yield before unknown acquisition costs, but the potential refinance proceeds cannot be calculated.

Buy-to-Let Analysis

The advertised rent is £26,000 per annum, equivalent to approximately £2,166.67 per month. Against the £300,000 guide, the gross yield calculates to approximately 8.67% before finance, tax, insurance, management, maintenance and auction costs. Income is supported by new 15-year FRI leases to William Hill, subject to tenant break options at years 7 and 12. The Buyer’s Premium and any other charges are unspecified, so the true all-in yield will be lower.

Flip Analysis

A flip surplus cannot be established because no completed sales, GDV, resale evidence, refurbishment allowance or selling-cost allowance was supplied. The property is presented as an income investment rather than a refurbishment-led resale opportunity.

Investor Risks & Due Diligence

• Tenant break options at the 7th and 12th anniversaries may affect income duration.

• Open market rent reviews occur only at the 5th and 10th anniversaries; future rental outcomes are not evidenced.

• The advertised 9.8% yield does not reconcile with £26,000 annual rent and the £300,000 guide, which calculates to approximately 8.67%.

• Buyer’s Premium and potentially other property-specific charges are applicable or may be applicable, but amounts are not supplied.

• No external rental comparables or completed sales were supplied.

• The legal pack and Articles of Roup may contain additional fees or conditions not provided here.

Recommendation

Consider as a commercial income-hold investment only, subject to reviewing the leases, break provisions, rent review terms, legal pack and all buyer charges. Do not rely on the stated 9.8% yield without reconciling its calculation.

Strategy Rating

Analysis Confidence

The lease structure, tenant, floor area, guide price and advertised rent are supplied, but there are no sales comparables, external rental evidence, EPC, formal valuation, GDV, works budget or quantified auction fees.