Single-Let Industrial Investment, Wallsend
SMD Building, Oceana Business Park, Davy Bank, Wallsend , NE29 6UZ
Investment, Industrial
2.28 Acres
£4,250,000 for the Freehold
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 a 2.28-acre (0.92 ha) industrial site featuring a single manufacturing unit with integrated office and welfare facilities, alongside extensive hardstanding areas.
The unit is used for the manufacture and storage of subsea equipment, supporting operations from SMD's adjacent freehold offices and manufacturing buildings.
Significant investment has been made in the production area, and the offices and welfare facilities have also recently been upgraded to a high standard.
There is direct access to the adjacent deepwater dock which is mission critical to the occupiers operation.
- 16.5m clear height to haunch in the higher bay, 12.5m in the lower bay-
- 2 x 50-tonne cranes and 2 x 25-tonne cranes installed, with 8m clear working heigh
Key features
SMD Limited (Soil Machine Dynamics): Over 50 years of expertise in the subsea engineering sector
Site coverage just 28.2%
Freehold
Part built in 2011 and the remainder in 2014
Direct access to SMD's head office and second manufacturing unit, both owned freehold by SMD
Direct access to Deep Water Dock access on adjacent plot
Let to Soil Machine Dynamics Limited unit June 2039 (tenant break option in June 2034) with uncapped RPI uplifts in 2029 and 2034
FRI lease with NO Schedule of Condition
Offers in excess of £4,250,000 exc. VAT. Attractive net yield of 6.73% rising to 7.88% in 2029 (based on UK inflation date and OBR predictions)
Location
Wallsend is a well-established suburb of North Tyneside, located 3 miles east of Newcastle upon Tyne, on the north banks of the River Tyne.
Newcastle is the commercial capital of the North East of England and one of the UK's top seven regional cities. It lies 97 miles north of Leeds and 123 miles south of Edinburgh.
The property benefits from excellent transport links, being close to the A19 dual carriageway, which bypasses Newcastle and connects Teesside to the south and the A1 to the north. Newcastle's East Coast mainline station provides fast rail connections, with trains reaching London in 2 hours 40 minutes and Edinburgh in 1 hour 30 minutes.
Situated at the southern end of Oceana Business Park, the site lies less than half a mile south of Wallsend town centre, at the end of Davy Bank, and is accessible via the A187 Hadrian Road. It sits adjacent to the former Swan Hunter shipyard, a well-known industrial landmark.
Public transport is convenient, with Hadrian Road Metro Station located close to the site entrance and several bus routes serving the area.
North Tyneside is a key hub for the energy sector, home to major occupiers such as Siemens Energy, Smulders and Baker Hughes.
Situation
The property is located on Oceana Business Park within the River Tyne's thriving marine innovation corridor, a strategic location for advanced engineering, subsea, marine, offshore, and renewable energy sectors.
Oceana Business Park has undergone significant recent transformation, now offering extensive secure open storage plots and refurbished warehouse/industrial and office space. In addition the site offers bespoke development opportunities.
The Swan Centre of Innovation, a specialist business centre supporting high-tech engineering and offshore industries is close by, as is Neptune Energy Park, a 60-acre manufacturing and education cluster with deepwater access and an operational quay edge.
The Shepherd Offshore Technology Park, a world-class cargo handling and manufacturing terminal, is also within close proximity.
To the east lies the 75-acre Smulders Hadrian Yard, a significant industrial site. Across the river to the south is the headquarters of A&P Group, a global leader in ship repair and marine services.
The Port of Tyne, located at the river's mouth, is one of the UK's most innovative and efficient deep-sea ports, handling cargo from five continents and extending to approximately 250 hectares across both riverbanks.
The subject site forms part of the River Tyne Economic Corridor, included in the £160m North East Investment Zone. This 10-year programme aims to unlock growth in clean energy and green manufacturing, with a particular focus on offshore and renewable energy,
electric vehicle and battery production, and low-carbon manufacturing and research
Terms
Offers in excess of £4,250,000 are invited for the freehold interest (subject to the existing occupational lease), reflecting a net initial yield of 6.73%, assuming standard purchaser's costs.
This would show a reversionary yield at the 2029 rent review of 7.88% based on 2025 and 2026 inflation data and OBR predictions for inflation over the next 3 years.
