Single Let High Yielding Industrial Investment, Newcastle upon Tyne
Unit 4, Fisher Industrial Estate, Fisher Street, Newcastle Upon Tyne, NE6 4LT
Industrial, Investment
10,937 Sq Ft
£365,000 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 building is of steel portal frame construction with brick/blockwork elevations to approximately 2 metres, with metal profile cladding beneath a pitched single-skin metal clad roof. We understand that works of repair to the roof have been carried out in the last 24 months.
Internally, the warehouse benefits from gas-fired heating, while the office accommodation is fitted with air conditioning. There is lighting throughout which is a mix of fluorescent tube and box fittings. A mezzanine floor provides additional storage accommodation within the warehouse, and the property also benefits from approximately six demised car parking spaces externally.
The tenant currently uses the unit for storage and a workshop purposes.
Key features
Rarely available unit on Fisher Industrial Estate
Let to Northern Stage (Theatrical Productions) Limited (Company No. 02187213)
4.58 years to expiry (2.58 yrs to break)
Total GIA of 10,937 sq. ft (1,016 sq. m)
Very low passing rent of £38,500 per annum (£3.52 psf)
Reversionary rent of £71,000pa (£6.50 psf)
Tenant in occupation since 2017
Long leasehold expiring 28 February 2079 (53 years unexpired) with a current ground rent of £1,509 per annum
Seeking offers in excess of £365,000 exc. VAT showing a net initial yield of approx. 9.75% off the net rent of after standard purchaser costs. This shows a very low capital value of £33.37 psf
Location
The property forms part of Fisher Industrial Estate, Walker, an established industrial location within the wider East Newcastle area. The property benefits from convenient connections to the A1058 Coast Road, A19 and Tyne Tunnel to the east, Newcastle city centre and A1 to the west. Nearby occupiers include those involved in the offshore sector including Cleveland Cable qnd SMD Tech Works, as well as local industrial and warehousing operators.
Terms
The property is held on a 99-year lease from 1st March 1980 at a passing ground rent of £1,590 pa subject to open market reviews every 10th anniversary. We understand that the ground rent is not recharged to the tenant. The initial ground rent in 1980 was £1,325 per annum.
We are instructed to seek offers in excess of £365,000 exc. VAT showing a net initial yield of approximately 9.75% off the net rent of £36,991 pa after standard purchaser costs. This shows a potential reversion to over 18% at rent review in April 2029 and a very attractive capital value of £33.37 psf.
