3 Whitley Street, Reading

An opportunity to acquire a freehold mixed-use investment property located within an established neighbourhood retail parade on Whitley Street, Reading, approximately 1 mile south of Reading town centre.

The property comprises a ground floor retail unit let to Age UK together with a self-contained three-bedroom maisonette above, producing a current combined income of £21,680 per annum with clear potential for future rental growth.

The ground floor retail premises extend to approximately 750 sq ft (69.7 sq m) and provide an open plan sales area with ancillary accommodation to the rear including storage, kitchen and staff W.C. facilities. The unit benefits from a double shop frontage onto Whitley Street together with a rear emergency exit.

The upper parts comprise a self-contained three-bedroom maisonette extending to approximately 850 sq ft (79 sq m) arranged over the first and second floors. The accommodation is accessed independently from the rear via an external staircase and comprises a living room, kitchen, bathroom and three bedrooms.

The retail unit is currently let to Age UK on a lease originally granted for 15 years from 25 March 2009, which expired on 24 March 2024. The tenant is currently holding over under the Landlord & Tenant Act 1954 at a passing rent of £9,500 per annum. A rent review dated March 2024 remains outstanding and negotiations are ongoing.

The residential accommodation is let on an Assured Shorthold Tenancy at a rent of £1,015 per calendar month (£12,180 per annum) which is currently continuing on a periodic basis.

The property therefore produces a total current income of £21,680 per annum, with potential for rental growth. In our opinion the commercial unit may achieve £13,000 – £15,000 per annum following review, while the residential rent is considered slightly below prevailing market levels.

The property forms part of a traditional Victorian parade of mixed retail and residential buildings serving a densely populated residential catchment area. Nearby occupiers include Tesco Express, Coral, a pharmacy, salons, takeaways and a range of independent retailers.

This represents an attractive opportunity for investors seeking a mixed-use freehold investment with income and future reversionary potential in a well-established Reading location.