Summary - 38, MARKET STREET SO50 5RA
1 bed 1 bath Cafe
Freehold cafe let to national operator — immediate income, short lease term risk.
Let to national operator Coffee#1 Ltd at £31,950 pa
Freehold corner unit with c.2,216 sq ft and ~80 covers (incl. external)
First floor fitted as training area; could add further covers or usage
Guide price £400,000 — NIY 7.67% (assumes 4.18% purchaser costs)
Only c.9 years unexpired on lease — may limit lender interest
Town‑centre location with high footfall; close to train station and car parks
Local crime level recorded as very high — consider insurance/operational risk
Internal fit‑out requires inspection; confirm EPC/VAT status
This freehold café investment occupies a prominent corner position on Market Street, Eastleigh, let to national operator Coffee#1 Ltd on a 20‑year lease expiring 11 May 2034. The tenant pays £31,950 per annum and reported group sales growth of c.15% year‑on‑year, underpinned by an established covenant and strong brand presence across the South Coast. The property includes ground and first‑floor trading areas, a fitted first‑floor training/ancillary space and active external seating, bringing total capacity to about 80 covers.
For an investor seeking immediate rental income, the guide price of £400,000 reflects a net initial yield of 7.67% (assuming purchaser costs of 4.18%). The freehold title and corner frontage provide good visibility, pedestrian exposure and scope to optimise signage or continue A1 use. The internal footprint of c.2,216 sq ft and external canopy seating are practical for ongoing café operation and support turnover potential in this busy town‑centre location.
Material considerations are clear and should guide buyer due diligence. Only c.9 years remain on the current expiry (rent reviews every fifth anniversary), which may restrict some mortgage lenders or affect re‑financing options. Local crime levels are recorded as very high, a factor to review with insurer and operator. Buyers should also confirm VAT and EPC positions, and inspect the internal fit‑out and mechanical services as these will affect re‑letting or alternative uses in future.
Overall this is a secure, income‑producing freehold with a recognised tenant and strong town‑centre trading position. It suits buyers prioritising immediate cashflow from a national covenant, provided they accept the lease length and take lender and local‑area risks into account.
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