2022 - We purchased a vacant 2 storey commercial property in a town centre in the North Eastern part of England. Purchased at auction for £68,000. A major defect/issue was identified and remedied, and circa £6,000 of improvement works carried out.
Tenant found and agreed a 10 year FRI lease at £10,000pa. Tenant carried out massive fit-out to the property at their expense.
Property sold 5 months after purchase for £110,000 to a cash buyer.
~£36,000 profit on £74,000 invested in 5 months
2021 - Ground Floor leasehold commercial unit purchased at auction for total of £135,000. The properties were then rented as 3 separate units on IR leases for 5+ years, which tenants fit out as salon, cafe, and retail unit. Total rent of £22,880pa.
2 years later, 2 units are sold off for total sold price of £200,000, giving our client a profit of £65,000 plus a retained leasehold unit paying £7,200pa
Over the last ~5 years, we have purchased 50+ large freehold pubs across the UK and have successfully rented each property (FRI long leases) for an average of 11%+ annual yield on gross purchase price. Many of our tenants invest in their businesses and subsequently the properties creating major uplifts for our clients. With an average LTV of 60-65% our clients are seeing circa 20% cash on cash returns before even considering the capital uplifts/appreciation these large freehold properties are bringing.
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