Latest Valuation
£
ROCE
34%
Selling Agent
Sourced Alderley Edge

11% Yield – Tenanted Children’s Care Home in Cannock

This property consists of a converted two storey residential property.
Guide Price
£340,000

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Key Features

  • 34% ROCE per annum
  • 11% gross yield
  • Sold as going concern with tenants in situ
  • Tenant operates in high demand sector
  • £36,000 rent per annum
  • 25 year lease with 15 year break clause

The Property

Sourced are delighted to present this converted storey residential opportunity located in Staffordshire, with an excellent gross yield of 11%.

The property is a converted two storey residential property operating as a complex needs emotional and behavioural disorder (EBD) home.

It has recently had a new boiler installed and benefits from mains gas central heating and sewerage.

The ground floor consists of a communal and administrative space, cloakroom/WC, kitchen, dining room, quiet room and rear lounge. Staff sleep on a pull out bed in the quiet room.

The first floor contains three young person's bedrooms with family bathroom with shower and staff office/bedroom with en suite WC/shower

The rear garden is enclosed, the drive also has a space for at least four cars.

Planning Information

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The Plan

Purchase a freehold children's care home at £340,000.

Once purchased this property will be leased back to the existing care provider for 25 years at the pre-agreed sum £36,000 per annum.

Based on a 65% LTV capital repayment mortgage at 5.75% this Care Home achieves a ROCE of 34% per annum over 25 years.

Sourced Alderley Edge has an exclusive arrangement with a Finance broker who can provide mortgages on this asset class to experienced investor landlords.

The Financials:

Purchase price: £340,000
Sourcing fee: 2%
Rental income: £36,000 pa
ROCE: 34%
Gross yield: 11%

The Location

Located in the general urban area of Cannock close to the main A5 and link to the M6 toll motorway.

Cannock town centre is approximately half a mile from the property. Local amenities are nearby in Cannock centre with a local primary school and bus routes.

Average estimated value for a house in WS11 1LT

£

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