Letting/Purchase and sale Greenwich

Question 1

What did you value the rent at?

Answer 1

£70,000

Question 2

What did you base the rent off?

Answer 2

Historic trading figures and comparables

Question 3

What did you advise your client in regards to the freehold offer?

Answer 3

I advised them that the £1,500,000 is above our opinion of market value, and based on the rent would equate to a 5% net yield. My opinion of rental yield was based on 6.50%, producing a value just under 1.1 mil.

Therefore this was an outstanding offer than if the client was inclined to sell, this was a great opportunity to do so.

Question 4

Why was the bid so high?

Answer 4

The interested party was a special purchaser, they operated the pub next door.

By buying this opportunity they were able to get rid of the direct competition and amalgamate the units easily to improve total trade.