- Rare opportunity to acquire a securely let, prime industrial investment
- Located on the North East's premier industrial estate
- Mission critical location for the tenant
- Let to a secure tenant with 4.05 years unexpired on the lease
- Tenant, Smiths News, has a Creditsafe Rating of 100 / A offering excellent security to an investor
- Significant reversionary potential at lease expiry
- Rare 'cross docked' unit
- Tenant didn't serve their break option - showing their ongoing commitment to the building / location
- Low overall capital value - underpinned by vacant possession value
The property comprises a prime, single let industrial investment securely let to Smiths News with c. 4.05 years unexpired on the lease at a rent of £131,550 per annum.
The asset is located on the regions premier industrial estate and comprises a modern detached steel portal frame warehouse and production facility together with integral two storey office accommodation. The property benefits from 10 electrically operated access doors providing cross loading as well as two yard areas on both the northern and southern elevations.
There was a tenant only break option at the end of the 5th year of the term which they didn't serve, showing their ongoing commitment to the location and building.
Offers are sought in excess of £1,650,000 (One Million, Six Hundred & Fifty Thousand Pounds) exclusive of VAT, reflecting a Net Initial Yield of 7.51% after allowing for purchaser's costs of 6.16%.
£1,650,000 reflects a reversionary yield of 8.62% and a low overall capital value of £92.82 per sq ft.
The boroughs of Gateshead, Newcastle, Sunderland, North Tyneside and South Tyneside form the conurbation of Tyne & Wear which has a population of over 1.3 million people, making it the seventh largest in the country.
Team Valley is the premier industrial location in the north east. It was originally designated in 1935 and now provides one the largest industrial complexes in Europe covering approximately 285 hectares (705 acres) and provides 5.6m sq ft of industrial space and in excess of 7m sq ft of commercial space in total.
The estate is home to over 740 multi-national and regional companies and employs more than 24,000 people. Fitting its status as the region's dominant business location, Team Valley is also home to the region's most successful retail park, Team Valley Retail World and a separate Sainsbury's supermarket.
The subject property occupies a prominent position fronting Kingsway South to the southern end of Team Valley. Kingsway is the main thoroughfare for Team Valley Trading Estate.
All figures quoted are exclusive of VAT which may apply.
The property is let in its entirety to Smiths News Trading Limited (00237811) for a term of 10 years with effect from 1st April 2020 at a rent of £131,550 per annum (£7.40 per sq ft.)
There was a tenant only break option at the end of the 5th year of the term which they didn't serve, showing their ongoing commitment to the location and building.
The lease is drawn on Full Repairing and Insuring (FRI) terms and there is c.4.05 years unexpired on the lease.
Offers are sought in excess of £1,650,000 (One Million, Six Hundred & Fifty Thousand Pounds) exclusive of VAT, reflecting a Net Initial Yield of 7.51% after allowing for purchaser's costs of 6.16%.
£1,650,000 reflects a reversionary yield of 8.62% and a low overall capital value of £92.82 per sq ft.
The EPC Rating for the property is B (44)