Piccadilly / Brunswick Street, Hanley
Keeping the existing bookmakers and bridal shop as tenants, with three more vacant retail units available, we’ll create 12 new apartments in the heart of this area of regeneration.
Secured at auction last week for £425,000, this space of over 13,000 sq. ft. offers commercial income from day one amounting to £3,500 per month, with potential for £5,500 per month in all, once the three remaining units are occupied.
The creation of residential units above will bring in a further £6,600 monthly income.
* Warning: Capital at risk. The value of your investments can go down as well as up, so you could get back less than you invested. Suitable for sophisticated investors. *
Current condition
Target finish
The investment…
Purchase price £425,000
Stamp duty £10,750
Professional fees £8,000
Cost of refurbishment £550,000
incl 10% contingency
Total investment £993,750
GDV/DUV £1,600,000 ( 75% remortgage at £1,200,000 gives us almost our entire investment back )
Income going forward…
Commercial income £5,500 PCM ( £62,700 PA with 5% void rate )
Residential income £6,600 PCM ( £75,240 PA incl. 5% void rate )
less: Interest only remortgage £2,833 PCM ( £34,000 PA )
less: Running costs £2,340 PCM ( £28,080 PA )
Total net income £6,320 PCM / c. £75,000 PA
Return on investment…
With £18,750 of our investment left in the property after refinancing, this net annual income represents a return on investment of 300% in the first year. In a nutshell, the small remaining amount is repaid in the first few months, and we’re left with an income-producing asset for life.
Over a ten year period the property will produce around £700,000 in income which can be reinvested into future purchases.
If you’re interested in becoming involved with similar opportunities, with the ability to earn excellent fixed returns, please contact us.