Industrial Investment on Prominent Estate, Gateshead
Unit D12, Eleventh Avenue North, Team Valley Trading Estate, Gateshead, NE11 0NJ
Industrial, Investment
8,450 Sq Ft
£475,000 Long Leasehold
For Sale
Chris Donabie
Interested in this property?
Please contact me
chrisdonabie@naylors.co.uk 0191 232 7030Find out more
About the property
The property comprises of a single storey detached industrial building of steel framed construction having brick/blockwork elevations to two metres with profiled metal cladding above. The roof is of pitched design and has profiled metal decking over, incorporating 5% translucent lights. The eaves height ranges from 5.5m to 6.7m at the apex.
Internally, the warehouse is used for storage and distribution with racking throughout; there are two electric up/over shutter doors with a height of 4.9m and a width of 4m both doors go out to the yard/car park. The property benefits from a tenant-installed trade counter to the front, together with a first-floor office mezzanine. The unit is fitted with LED lighting throughout and 3-phase electricity. There is no heating within the warehouse area; however, the trade counter and office accommodation has electric wall heaters and an air conditioning unit.
Key features
Rare opportunity to purchase on Team Valley Trading Estate
Let to HFD Limited (Co. No. 02674152)
5.6 years to expiry, approx. 8 months to break
Low passing rent of £43,400 per annum (£6.18 psf)
Reversionary rent of £52,665 (£7.50 psf) without tenant fit out
Tenant has been in occupation for over 25 years
Long leasehold expiring 22 August 2116 (90 years unexpired) at peppercorn rent
Seeking offers in excess of £475,000 exc. VAT showing a net initial yield of 8.74% after standard purchaser costs
Reversion at rent review or to a new tenant of over 10.50% after standard purchaser costs
Location
The property is located within Team Valley Trading Estate, one of the North East's busiest and most important commercial estates. Team Valley covers a total area of approximately 238 hectares and provides in excess of 650,000 sq. m of commercial accommodation.
Eleventh Avenue North links with Eleventh Avenue which runs eastwards from Kingsway South. Junction 67 of the A1 Western Bypass is immediately to the south and is approximately half a mile from the subject property.
The property is situated on the western side of Eleventh Avenue North which runs north/south parallel and to the east of Kingsway. Kingsway is the main arterial route through Team Valley. Adjacent to the property include The Avenues and Perth Court which are multi let industrial estates with trade counter and storage operators.
Terms
The property is held on a 125-year lease from 25 August 1991 on a peppercorn rent.
The unit is currently let to HFD Limited on a 10- year FRI lease from 7 December 2021, at a passing rent of £43,400 per annum. There is an open market rent review and tenant break option on 7 December 2026. The current passing rent is relatively low, equating to £6.18 psf excluding tenants fitout.
