Guide price
£900,000
(£190.46/sq. ft)
Restaurant for sale62 High Street, Cefn Coed, Merthyr Tydfil, Mid Glamorgan CF48
4,725 sq. ft
EPC Rating: D
Just added
Freehold
About this property
£92,820 Current rental income
10.3% Yield
2 x commercial units
Established Restaurant on 5 year lease
Restaurant tenant looking to stay past 5 year lease
Central Merthyr Town Centre Position
9 x Self contained flats
Additional Ice Cream Parlour To Let
On-site Office, Storage, and Large Bin Store
Spv Purchase
The Woodfired Building presents a rare opportunity to acquire a substantial and recently converted mixed-use investment property positioned prominently within Merthyr Tydfil town centre.
The property comprises nine self-contained residential units together with two commercial units, creating a diverse and established income-producing investment with further potential to increase income through alternative accommodation and commercial uses.
The residential accommodation comprises a mixture of six studios/one-bedroom units, two one-bedroom apartments and one two-bedroom apartment, including an exceptionally large top-floor studio of approximately 1,500 sq ft.
The building has been extensively converted and refurbished between 2014 and 2020 by experienced developers, with the works undertaken with particular emphasis on security, thermal performance, acoustic insulation and compliance. The property benefits from double and triple glazing, fire protection measures, CCTV, a modern addressable fire alarm system, sprinkler provision, communal laundry facilities and established maintenance arrangements.
Established income
The property is currently producing £7,735 per calendar month (£92,820 per annum), reflecting an attractive 10.3% yield against the guide price of £900,000.
The residential accommodation is fully let and benefits from an established rental history. Two of the residential units are currently operated as short-term accommodation, while the remaining apartments provide traditional residential rental income.
There is also potential for the purchaser to increase income further by expanding the serviced accommodation element, with the existing owner having previously operated a greater number of units on an Airbnb/Booking.com basis.
Commercial restaurant
The commercial element includes an established restaurant premises which is currently occupied under a five-year commercial lease.
The existing restaurant business is well established and has indicated that it would be keen to remain in occupation beyond the expiry of the current five-year lease, providing the incoming purchaser with the prospect of a continuing commercial income stream.
The restaurant is situated within the wider mixed-use building and, according to the current owner, operates professionally with careful management of noise to ensure minimal impact upon the residential accommodation.
Additional ice cream parlour unit
The property also incorporates a small dedicated ice cream parlour/commercial unit, which is currently available to let.
The unit is being marketed at approximately £300 per calendar month, providing an additional potential income stream for the purchaser once occupied.
This provides an opportunity to either let the unit independently or utilise it for an alternative complementary commercial use, subject to any necessary consents.
Additional facilities
The Woodfired Building benefits from a number of useful ancillary areas and facilities which enhance the overall investment proposition, including:
On-site storage facilities, Dedicated office/storage space, Large bin and recycling storage area, Communal laundry room, Cleaning cupboard and shared equipment storage, CCTV coverage, Modern addressable fire alarm system, Part-building sprinkler system, Established local maintenance contractors, Secure and organised refuse and recycling facilities, The large bin and recycling area is located within the Woodfired yard and is arranged to accommodate cardboard, paper, plastics, tins, glass and general waste, with the area covered by CCTV and secured by a coded padlock.
Location
The property occupies a prime town centre position in Merthyr Tydfil, close to the town’s principal amenities and transport infrastructure.
It is situated within easy walking distance of the bus and railway stations, town centre shops and extensive town-centre parking, with more than 1,000 car parking spaces referenced within the existing sales information.
The location also benefits from its proximity to major local employers, the hospital and care facilities, while Merthyr Tydfil’s wider visitor economy provides an additional driver of demand for accommodation.
The town is particularly well positioned for access to the surrounding valleys and South Wales road network. The improved Heads of the Valleys road provides convenient connections towards Abergavenny and Swansea, while the A465 provides straightforward access towards Brecon and Cardiff.
Merthyr Tydfil also benefits from its proximity to the Brecon Beacons, BikePark Wales and the area’s industrial heritage attractions, creating a combination of local residential, employment and tourism demand.
A new town-centre bus station, referenced within the existing sales information at approximately £11 million, is situated around two minutes’ walk from the property, with the railway station in similarly close proximity. Rail connections provide access towards Pontypridd and Cardiff, with onward connections towards London.
The building
Originally constructed in approximately 1890, the property presents an attractive red-brick, ashlar and rendered façade and is situated within a conservation area.
The building was previously acquired directly from McDonald’s, with the roof and lintels having been replaced historically. The underlying structure is described by the existing owner as solid, with the extensive conversion subsequently creating a modern mixed-use investment while retaining the character of the original building.
The refurbishment incorporated enhanced acoustic and fire protection measures, including specialist fireproof and soundproof screed board throughout the floors to minimise impact and transfer noise between units.
Investment potential
In addition to the existing £92,820 per annum rental income, the property offers several potential avenues for an investor to increase returns.
These include:
Letting the currently vacant ice cream parlour at approximately £300 per month
Reviewing residential rents upon future tenancy events
Expanding the number of apartments operated as serviced accommodation
Exploring short-term accommodation opportunities
Potential additional income from Wi-Fi provision
Optimising the commercial accommodation over the longer term
The existing sales information identifies historic annual residential income in excess of £84,000 in 2023 and £92,000 in 2024, demonstrating an established trading history and the potential to achieve approximately £100,000 per annum under the existing model, with greater income potentially achievable through a more intensive serviced-accommodation strategy.
Turnkey investment
The sale provides an opportunity to acquire an established mixed-use investment with the benefit of the existing tenants, deposits and furniture.
The property is offered as a turnkey investment, with established maintenance contacts, management arrangements and operational infrastructure already in place.
The owner is also prepared to provide an element of ongoing advisory support following completion, helping facilitate a smooth transition for the incoming purchaser.
Key investment highlights
Guide price: £900,000
Current rental income: £7,735 pcm
Annual income: £92,820
Indicative yield: 10.3%
Nine self-contained residential apartments
Two commercial units
Established restaurant tenant on a five-year commercial lease
Restaurant business keen to remain beyond the current lease term
Additional ice cream parlour unit available to let at approximately £300 pcm
Prime Merthyr Tydfil town-centre position
Close to bus and railway stations
Extensive nearby town-centre parking
Proximity to major employers, hospital and care facilities
Excellent road connectivity via the A465 and Heads of the Valleys route
Close to BikePark Wales and the Brecon Beacons
Extensive refurbishment and conversion
CCTV and modern fire alarm system
Part-building sprinkler system
Communal laundry facilities
On-site storage and office facilities
Large dedicated bin and recycling area
Established maintenance infrastructure
Furniture and existing tenant arrangements included
Further potential to increase income through serviced accommodation and rental optimisation
The property comprises nine self-contained residential units together with two commercial units, creating a diverse and established income-producing investment with further potential to increase income through alternative accommodation and commercial uses.
The residential accommodation comprises a mixture of six studios/one-bedroom units, two one-bedroom apartments and one two-bedroom apartment, including an exceptionally large top-floor studio of approximately 1,500 sq ft.
The building has been extensively converted and refurbished between 2014 and 2020 by experienced developers, with the works undertaken with particular emphasis on security, thermal performance, acoustic insulation and compliance. The property benefits from double and triple glazing, fire protection measures, CCTV, a modern addressable fire alarm system, sprinkler provision, communal laundry facilities and established maintenance arrangements.
Established income
The property is currently producing £7,735 per calendar month (£92,820 per annum), reflecting an attractive 10.3% yield against the guide price of £900,000.
The residential accommodation is fully let and benefits from an established rental history. Two of the residential units are currently operated as short-term accommodation, while the remaining apartments provide traditional residential rental income.
There is also potential for the purchaser to increase income further by expanding the serviced accommodation element, with the existing owner having previously operated a greater number of units on an Airbnb/Booking.com basis.
Commercial restaurant
The commercial element includes an established restaurant premises which is currently occupied under a five-year commercial lease.
The existing restaurant business is well established and has indicated that it would be keen to remain in occupation beyond the expiry of the current five-year lease, providing the incoming purchaser with the prospect of a continuing commercial income stream.
The restaurant is situated within the wider mixed-use building and, according to the current owner, operates professionally with careful management of noise to ensure minimal impact upon the residential accommodation.
Additional ice cream parlour unit
The property also incorporates a small dedicated ice cream parlour/commercial unit, which is currently available to let.
The unit is being marketed at approximately £300 per calendar month, providing an additional potential income stream for the purchaser once occupied.
This provides an opportunity to either let the unit independently or utilise it for an alternative complementary commercial use, subject to any necessary consents.
Additional facilities
The Woodfired Building benefits from a number of useful ancillary areas and facilities which enhance the overall investment proposition, including:
On-site storage facilities, Dedicated office/storage space, Large bin and recycling storage area, Communal laundry room, Cleaning cupboard and shared equipment storage, CCTV coverage, Modern addressable fire alarm system, Part-building sprinkler system, Established local maintenance contractors, Secure and organised refuse and recycling facilities, The large bin and recycling area is located within the Woodfired yard and is arranged to accommodate cardboard, paper, plastics, tins, glass and general waste, with the area covered by CCTV and secured by a coded padlock.
Location
The property occupies a prime town centre position in Merthyr Tydfil, close to the town’s principal amenities and transport infrastructure.
It is situated within easy walking distance of the bus and railway stations, town centre shops and extensive town-centre parking, with more than 1,000 car parking spaces referenced within the existing sales information.
The location also benefits from its proximity to major local employers, the hospital and care facilities, while Merthyr Tydfil’s wider visitor economy provides an additional driver of demand for accommodation.
The town is particularly well positioned for access to the surrounding valleys and South Wales road network. The improved Heads of the Valleys road provides convenient connections towards Abergavenny and Swansea, while the A465 provides straightforward access towards Brecon and Cardiff.
Merthyr Tydfil also benefits from its proximity to the Brecon Beacons, BikePark Wales and the area’s industrial heritage attractions, creating a combination of local residential, employment and tourism demand.
A new town-centre bus station, referenced within the existing sales information at approximately £11 million, is situated around two minutes’ walk from the property, with the railway station in similarly close proximity. Rail connections provide access towards Pontypridd and Cardiff, with onward connections towards London.
The building
Originally constructed in approximately 1890, the property presents an attractive red-brick, ashlar and rendered façade and is situated within a conservation area.
The building was previously acquired directly from McDonald’s, with the roof and lintels having been replaced historically. The underlying structure is described by the existing owner as solid, with the extensive conversion subsequently creating a modern mixed-use investment while retaining the character of the original building.
The refurbishment incorporated enhanced acoustic and fire protection measures, including specialist fireproof and soundproof screed board throughout the floors to minimise impact and transfer noise between units.
Investment potential
In addition to the existing £92,820 per annum rental income, the property offers several potential avenues for an investor to increase returns.
These include:
Letting the currently vacant ice cream parlour at approximately £300 per month
Reviewing residential rents upon future tenancy events
Expanding the number of apartments operated as serviced accommodation
Exploring short-term accommodation opportunities
Potential additional income from Wi-Fi provision
Optimising the commercial accommodation over the longer term
The existing sales information identifies historic annual residential income in excess of £84,000 in 2023 and £92,000 in 2024, demonstrating an established trading history and the potential to achieve approximately £100,000 per annum under the existing model, with greater income potentially achievable through a more intensive serviced-accommodation strategy.
Turnkey investment
The sale provides an opportunity to acquire an established mixed-use investment with the benefit of the existing tenants, deposits and furniture.
The property is offered as a turnkey investment, with established maintenance contacts, management arrangements and operational infrastructure already in place.
The owner is also prepared to provide an element of ongoing advisory support following completion, helping facilitate a smooth transition for the incoming purchaser.
Key investment highlights
Guide price: £900,000
Current rental income: £7,735 pcm
Annual income: £92,820
Indicative yield: 10.3%
Nine self-contained residential apartments
Two commercial units
Established restaurant tenant on a five-year commercial lease
Restaurant business keen to remain beyond the current lease term
Additional ice cream parlour unit available to let at approximately £300 pcm
Prime Merthyr Tydfil town-centre position
Close to bus and railway stations
Extensive nearby town-centre parking
Proximity to major employers, hospital and care facilities
Excellent road connectivity via the A465 and Heads of the Valleys route
Close to BikePark Wales and the Brecon Beacons
Extensive refurbishment and conversion
CCTV and modern fire alarm system
Part-building sprinkler system
Communal laundry facilities
On-site storage and office facilities
Large dedicated bin and recycling area
Established maintenance infrastructure
Furniture and existing tenant arrangements included
Further potential to increase income through serviced accommodation and rental optimisation
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£4,502 per month
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