Year of purchase
March 2011
Cost of purchase and re-development
£1.3m
Fair Value (December 2021)
£3.2m
Current rent per year
Commercial £12,000 / Residential £102,600
3 year average gross rental yield
15.3% on capital investment
Background
Property bought as a single property, combining a shop and a warehouse behind it. Upon purchase, the warehouse was demolished and 6 houses were built in its place. The shop was renovated and 2 flats were built on top. The 2 flats were sold in 2013 for £394K (allocated cost £319K). The shop and 6 houses were kept in the portfolio as part of the value strategy due to the competitive rental yield produced.