St Clements, Stanley Road, Nechells, Birmingham, B7

Overview

St Clements is a freehold former nursing home in Nechells, inner Birmingham, fully refurbished and reconfigured into 45 en-suite rooms across 11,420 sq ft. It is let by the room at £520 per room per week gross under a management contract, giving a passing rent of £1,095,120 per annum at 90% occupancy. The building suits two routes: a care operator taking on an ex care home, or a supported and social housing operator running it as a care home converted into a social housing facility.

Investment highlights

• Freehold, held in a single title, with 45 en-suite rooms fully refurbished throughout
• Let by the room at £520 per room per week gross, with management at 13% of gross rent
• Passing rent of £1,095,120 per annum at 90% occupancy, a gross yield of 36.5% on the asking price
• Two routes to value: an ex care home for a registered care operator, or a care home converted into a social housing facility
• Operating costs modelled flat across occupancy rather than scaled down, so the return holds as rooms void
• Break-even at 32% occupancy, around 15 of the 45 rooms covering running costs and finance
• 11,420 sq ft, around 254 sq ft per room including communal and circulation space
• EPC C, valid to July 2031, and around 1.5 miles from Birmingham city centre

The numbers

Asking price	£3,000,000
Rooms	45 en-suite
Rent per room	£520 per week gross
Passing rent	£1,095,120 per annum at 90% occupancy
Gross yield	36.5% at 90% occupancy
Management	13% of gross rent
Tenure	Freehold
Internal area	11,420 sq ft
EPC	C, valid to July 2031

The income basis

The figures above are struck at 90% occupancy, not at full occupancy, and the operating cost load is carried in full at every level rather than flexed down as rooms void. Staff, utilities and insurance do not fall when a room empties, so modelling them flat is the honest basis. At 95% occupancy the gross rent is £1,155,960 and at 80% it is £973,440.

Stamp duty on this purchase depends on the route the transaction takes, and the difference is material. The investment pack sets out both, along with the full income and return breakdown across four occupancy levels. Documentation covering the income, compliance, construction and title is available for review on request.