Latest Valuation
£735,000
ROCE
154%
Selling Agent
Sourced Birmingham

154% ROCE – Exclusive High Street Conversion Opportunity

Pre-planning has been approved for a change of use and conversion to 12 residential flats.
Guide Price
£330,000

Share this page

Message Agent





Key Features

  • Great high street location with strong transport links
  • Opportunity to earn over 150% ROCE
  • High demand area
  • Excellent rental yield of 10.7%

The Property

Sourced are delighted to present this incredible opportunity to invest in an upmarket high street conversion project, offering a huge ROCE of 154%.

The property was previously a 3 storey town centre retail unit occupied by a high street retailer.

Pre-planning has been approved for a change of use and conversion to 12 residential flats.

The area is well served by transport links and is a high demand rental location.

The square footage of the property is as follows:

G- 2553 sqft

1- 2568 sqft

2- 2568 sqft

Basement- 3096 sqft

Upon completion, the property will consist of 3 x 2 beds and 1 x 1 bed on each floor.

A builders estimate for the conversion has been quoted at £180k.

With a conservative annual rental income of £61,920, the property will generate an 10.7% net rental yield and can be positioned for an ROI exceeding 25% or an ROCE of over 150%.

Planning Information

Pre-planning has been approved for a change of use and conversion to 12 residential flats.

The Plan

This property represents a premium opportunity to invest in an upmarket high street project, offering 11.5% rental yield or 154% ROCE.

The 3 storey town centre retail unit has planning permission, pending for conversion to 12 residential apartments.

An investor may either look at this property as a conversion flip, or maximize the rental income with a longer view.

Conversion flip

Purchase price - £330k

Conversion and additional costs - £247k

Total cost - £577k

Gross development value - £735k

Profit - £158k

As a flip, the project could generate an impressive 27% ROI on a cash backed finance and an even higher ROCE of 154%, if the project is financed.

With a conservative annual rental income of £61,920, the property will generate an 10.7% net rental yield.

Further information on workings is available on request.

The Location

Tunstall is a town in Stoke-on-Trent, with a vibrant high street and town centre that has recently undergone a city council refurbishment.

Stoke-on-Trent is at the heart of the Midlands, with a growing demand for residential properties.

Average estimated value for a house in ST6 5EA

£

The average valuation for a 1 bed flat in the area, is £50K and for a 2 bed is £65K.

Conservative assessments of rental income suggest, monthly rent of £370 (1 bed) & £450 (2 bed).

The valuations and rental estimates are conservative in nature and based on verified Property Data information.