3 High Street

Case Study: 3 High Street, Wrexham
Predictability • Optionality • Partner Capital
The Opportunity
Four-storey High Street commercial building
Identified using Property Filter
Initially marketed at £280,000
Reduced to £230,000
The price drop, not the building, triggered interest.
The Vendor Motivation

Seller: UK pension fund
Purchased in 2009 for £240,000
Held for ~15 years
Leased long-term to Chatwins Bakery
Rent achieved: £25,000 per annum
The fund had already achieved its return through income. Exit price was less important than certainty.
Why This Was Mispriced
Offered below the 2009 purchase price
Pension fund returns ≠ private investor returns
Disposal driven by portfolio management, not distress
This created a clear pricing mismatch.
Entry & Structure
Negotiated using a structured offer ladder
Final purchase price: £200,000
Funded with joint venture capital
The JV partner was seeking:
immediate cashflow
long-term value appreciation
Capital moved because the structure was clear.
Strategy Optionality
Three viable routes existed from day one:
Plan A
Retail + 9-bed HMO (planning submitted)
Plan B
Split into multiple commercial units
Plan C
Re-let or sell as-is
Multiple exits meant no single point of failure.
Execution & Outcome
Residential planning paused by Wrexham Council
(nitrates in the River Dee)
Immediate pivot to Plan C
Within two weeks:
Lease agreed at £2,000 pcm (£24,000 pa)
Option to purchase at £275,000
No refurbishment. No additional capital deployed.
Assumptions Used (Clear & Conservative)
Purchase price: £200,000 (cash)
Holding period: 3 years
Rent: £2,000 per month
Total rental income: £2,000 × 36 months = £72,000
Sale price at year 3: £275,000
No leverage
No refurb
No cost inflation assumed (keeps this clean)
Total Returns (3-Year Period)
£72k
Rental income
£75k
Capital uplift
£275,000 − £200,000 = £75,000
£147k
Total profit
£72,000 + £75,000 = £147,000
£347k
Total cash returned
Return on Capital
Capital invested: £200,000
Total profit: £147,000
73.5%
Simple ROI over 3 years
IRR (Internal Rate of Return)
Based on:
£200,000 invested day one
£2,000 per month income
£275,000 sale in month 36
Annualised IRR:
~23.2% per annum
(Unleveraged, low-risk profile)