Description
113 St Mary's Road comprises a mixed-use investment opportunity consisting of a ground floor commercial unit with seven self-contained residential flats arranged over the upper floors. The residential accommodation comprises 1 studio, 4x one-bedroom and 2x two-bedroom flats.
Location
113 St Mary's Road is situated to the east of Southampton City Centre, within a well-established mixed-use area and close to the city's principal retail, leisure and cultural amenities. The property is within walking distance of St Mary's Stadium, Westquay Shopping Centre, Above Bar Street and the Cultural Quarter.
Southampton Central railway station is readily accessible, providing direct services to London Waterloo and other major regional centres. Excellent road communications are available via the A3024, A33 and M27, offering convenient access to Portsmouth, Winchester, Bournemouth and the wider South Coast.
Terms
Offers are sought in excess of £1,200,000, subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of c.6% and a reversionary yield of 9.5% assuming purchaser's costs of 6.5%.
Legal Costs
Each party to be responsible for their own legal costs incurred in the transaction.
VAT
Unless otherwise stated terms are strictly exclusive of Value Added Tax and interested parties must satisfy themselves as to the incidence of this tax in the subject case.
AML
In accordance with Anti-Money Laundering requirements, two forms of identification will be required from the tenant and any beneficial owner together with evidence/proof identifying the source of funds being relied upon to complete the transaction.
Rental Commentary
The ground floor commercial unit is let on a 25-year lease from December 2021 at a passing rent of £25,000 per annum, inclusive of VAT.
The residential accommodation is practically let on APTs and with the remaining rooms let as serviced accommodations, currently generating £66,576 per annum.
Combined, the property produces a total income of £91,576 per annum, commercial only exclusive of VAT.
Based on the rental levels achieved across the let residential accommodation, the vacant units (Flats 1, 4 and 5) are estimated to generate an additional circa £46,663 per annum once fully let. All rents are inclusive of utilities. Accordingly, the property has an estimated fully let rental value (ERV) of approximately £120,000 per annum.
T&CS
This property is being marketed for sale on behalf of the Joint LPA Receivers and therefore no warranties or guarantees in any respect, including VAT, can be given. The information in these particulars has been provided by the Joint LPA Receivers to the best of their knowledge but the purchaser must rely solely upon their own enquiries. The Joint LPA Receivers are not bound to accept the highest or any offer and are acting in respect of this sale without personal liability.
