Your client, a property investment and development company, is evaluating their portfolio and has identified two assets they are interested in acquiring. You have been instructed to provide them with valuation advice as follows:

1. ASSET 1 63 GOULDEN STREET
Provide your client with the freehold and leasehold valuations of a retail unit in an established location on the outskirts of a town just north of Manchester.
The property was let it to a florist six years ago on a ten year internal repairing and insuring lease. The lease provides for the rent to be reviewed after every five years on an upward only basis. The unit dimensions extend to 6.3m width by 17.8m depth on a net internal basis.
The tenant is currently paying a rent of £25,500 per annum. The current landlord has agreed to replace the roof covering in 2 years’ time at a cost of £6,500.

COMPARABLES
(a) 77 Goulden Street recently been let to a beauty salon on a nine year internal repairing lease with three yearly rent reviews at an annual rent of £29,000 annum. There is a break clause after six years. The AITZA of the property is 66.47m2.

(b) 48 Goulden Street, a single retail unit on the other side of the road, let four months ago to a pet therapy and dog grooming business. The property was let on FRI terms for five years at a rent of £23,625 and the unit measures 5.8m width by 19.8m depth.

(c) The freehold interest in a small parade of four shops three miles away sold a year ago for £930,000. The net rent roll at the time of sale was £72,000 per annum.