HMO Portfolio, Erdington, Birmingham, B23 & B24
Birmingham · B23
Overview
A portfolio of six freehold HMOs in Erdington, North Birmingham, let and managed as supported accommodation and producing a passing rent of £380,393 per annum, a 17.49% gross yield at the £2,175,000 asking price. The portfolio comprises 29 lettable rooms across six houses on Frances Road (×3), Slade Road, Queens Road and Alleyne Road, spanning the B23 and B24 postcode districts, all fully tenanted under established management arrangements. The portfolio is offered as a straight asset purchase of the six properties, no company or SPV structure is involved in the sale.
Investment highlights
- Six freehold HMOs, 29 lettable rooms, across the B23 and B24 postcode districts of Erdington, Birmingham
- Passing rent of £380,393 per annum (£31,699 per calendar month), a 17.49% gross yield at asking
- Fully tenanted supported accommodation with established, hands-off management arrangements in place
- Clean asset sale of the six properties, no SPV or company purchase involved
- Erdington sits four miles from Birmingham city centre with Cross-City line rail links and consistently strong room demand
- Best suited to operators established in the supported-living sector, full schedule and income breakdown in the investment pack
The numbers
Asking Price: £2,175,000 | Passing Rent: £380,393 pa | Gross Yield: 17.49% | Properties: 6 | Rooms: 29 | Tenure: Freehold
Rent schedule
- Frances Road, B23, three houses, 5 rooms each, £5,465 pcm per house
- Slade Road, B23 to 4 rooms, £4,372 pcm
- Queens Road, B23 to 5 rooms, £5,465 pcm
- Alleyne Road, B24 to 5 rooms, £5,465 pcm
- Total, 29 rooms, £31,699 pcm / £380,393 per annum
Location & demand
Four miles from Birmingham city centre, Erdington spans the B23 and B24 postcode districts, with Cross-City line rail links into the city. It is a dense, established rental area, terraced housing stock, a large working-age population and consistently strong room demand.
The portfolio is let and managed as supported accommodation, an established asset class, in an established Erdington location. All 29 rooms are let under supported-accommodation arrangements with hands-off management in place, spread across six houses on four streets, and the sale is a straight asset purchase of the six properties, no SPV or company structure involved. Best suited to operators already established in the supported-living sector, the portfolio arrives tenanted, managed and already producing.
The numbers
| Asking price | £2,175,000 |
| Passing rent pa | £380,393 (£31,699 pcm) |
| Gross yield | 17.49% |
| Tenure | Freehold |
| Properties | 6 houses |
| Lettable rooms | 29 |
| Structure | Straight asset sale, no SPV |
