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Yield
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Selling Agent
Sourced Manchester Central

5 Serviced Accommodation Units in Media City Manchester

Outstanding ROI 163% in year 1
Guide Price
£4,070

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Key Features

  • Fully furnished and ready to operate as SA
  • Stunning Media City location
  • On-site gym, cinema room, residents coffee lounge and terrace all free to use
  • Outstanding ROI 163% in year 1
  • Major employers, cafes, restaurants etc
  • Perfect for tourists, shopping trips, business travellers, couples, leisure breaks

The Property

5 apartments available: 2 x studios, 2 x 1 beds and 1 x 3 bed. New operator would attain all 5 units.
Sought after location in the heart of Media City. Perfect for business and leisure, offering easy access to City Centre.
Fully furnished, including sofa, table and chairs, TV, fridge freezer, microwave, kettle, toaster, kitchen utensils, pots, pans, dinner sets, cutlery and even bedding is included.
Little to no set-up cost as already operating with everything in them.
Hands off business model if using a management company therefore investor can be based anywhere, management company already in place.

The plan for the new owner is to take over R2R serviced accommodation business, includes all furniture and fittings.
Already operating as serviced accommodation easy hand over, current owner needs to raise capital for personal circumstances.
Opportunities like this do not come around often especially in a high end building in Media City and the Head Lease permits serviced accommodation.
Offered on a 3 year rent to rent contract with annual break clauses to give you flexibility.
Terms are negotiable.

All 5 units are fully furnished to a high standard, prime location in Media City. Available at the following rates:
• 2 x studio's - £660 pcm per unit. Bills: £250 pcm per unit.
• 2 x 1 beds - £750 pcm rent per unit. Bills: £300 pcm per unit.
• 1 x 3 beds and 2 bathrooms - £1,250 pcm rent per unit. Bills: £400 pcm per unit.

Initial costs:
• £40,000 fee for a live and operating Serviced Accommodation business in a lucrative location, includes all furnishings.
• £4,070 deposit
• £4,070 first months rent

Total = £48,140

ROCE 163% for the 1st year.

Please bear in mind there is no sourcing fee or deposit for years 2 and 3, since these have already been paid in year 1 therefore giving a much higher ROCE for subsequent years.

Rental income:

Figures based on average rate per night for first 2 guests staying. Every guest after first 2 is charged at £20 per person per night therefore huge scope to increase income.

Studio Total £530 per week at 100% occupancy.
Studio Total £530 per week at 100% occupancy.
1 Bed Total £620 per week at 100% occupancy.
1 Bed Total £620 per week at 100% occupancy.
3 Bed Total £1000 per week at 100% occupancy.

Realistically expect 80-90% occupancy if the business is marketed and operated correctly.

Below are the figures based on a 80% annual occupancy.

All 5 apartments achieve £3,300 per week revenue at 100% occupancy.

80% of £3,300 = £2,640 per month

£2,640 x 52 weeks = £137,280

£137,280 / 12 Months = £11,440

Total rent per month for all 5 apartments = £4,070.
Total bills costs for all 5 apartments = £1,500.

£11,440 - £4,070 rent - £1,500 bills = £5,870 Profit per month.

£70,440 annual profit.

£70,440 x 3 year contract = £211,320

We can introduce you to an excellent management company already operating in this building should you require their services.

Planning Information

N/A

The Plan

The plan for the new owner is to take over R2R serviced accommodation business, includes all furniture and fittings.
Already operating as serviced accommodation easy hand over, current owner needs to raise capital for personal circumstances.
Opportunities like this do not come around often especially in a high end building in Media City and the Head Lease permits serviced accommodation.

Offered on a 3 year rent to rent contract with annual break clauses to give you flexibility.

Terms are negotiable.

The Location

As a focal point for nurturing the best talent and host to a wide variety of leisure activities, MediaCityUK is a vibrant, sustainable destination to work, live and play, on the banks of the Manchester Ship Canal.

Home to the likes of BBC, ITV, Ericson, Media City is great for both business and leisure clients all year round.

Average estimated value for a house in M50

£

Figures are based on annual averages since this is a seasonal business and spring/summer months will achieve higher nightly rates and occupancy levels than winter months.

Nightly rates

2 x Studio sleeps 2. Could sleep up to 4 with sofa bed.

Nightly rate weekdays £60 - £80 depending upon season, Sunday to Thursday. Average Rate £70 per night.
Nightly rate weekends £80 - £100 depending upon season, Friday & Saturday. Average Rate £90 per night.

2 x 1 Beds - Sleeps up to 4 with sofa bed in lounge.

Nightly rate weekdays £70 - £90 depending upon season, Sunday to Thursday. Average Rate £80 per night.
Nightly rate weekends £100 - £120 depending upon season, Friday & Saturday. Average Rate £110 per night.

1 x 3 Bed - Sleeps up to 6 Guests, can sleep up to 8 with Sofa Bed in Lounge.

Nightly rate weekdays £90 - £150 depending upon season, Sunday to Thursday. Average Rate £120 per night.
Nightly rate weekends £175 - £225 depending upon season, Friday & Saturday. Average Rate £200 per night.