• Prominently situated on established business park

• Secure income (Nissan & Avant Homes)

• Adjacent to major new communications infrastructure

• By Northern Spire, an iconic new landmark bridge which is set to transform and regenerate the surrounding area

• Freehold

• £1,300,000, subject to contract

• 9.0% net initial yield

• £88 per sq ft capital value

The property is well located within Sunderland Enterprise Park, an established office and business park approximately 4.8 km (3 miles) north-west of Sunderland city centre. Other nearby occupiers include Manpower, Berghaus, TSB, WeSwitch and The Institute for Automotive & Manufacturing Advanced Practice.

The property is immediately adjacent to the A1231 (Wessington Way) which connects with the A19 less than 1.6 km (1 mile) to the west and the A1(M) 8 km (5 miles ) to the west. Access to the property is via Colima Avenue.

The Hylton Riverside Retail Park is within short walking distance of the subject property, with occupiers on the park including Aldi, Pets at Home, B&M, Matalan, Argos, Costa and Greggs.

Northern Spire

The subject property is within close proximity to Northern Spire, an iconic new landmark bridge and the first to be built across the River Wear in the city for 40 years. The bridge will provide a vital new transport link that will help connect the Port of Sunderland and Sunderland city centre with the A19, the developing IAMP Enterprise Zone and the wider Tyne and Wear city-region.

The new bridge will cross the river from the A1231 Wessington Way on the north bank to join with the B1405 in Pallion on the south bank and will enable land along the south side of the river to be regenerated.

Northern Spire is expected to help bring major economic and regeneration benefits to Sunderland and the wider Tyne & Wear region. According to Sunderland City Council it will:

• Help create 6,000 new jobs at development sites like the former Vaux site, the old Groves Cranes site and Hylton Park along the riverside corridor in Sunderland.

• Establish a strategic public transport corridor connecting Washington, Nissan, the new Enterprise Zones and the A19 with the city centre and the Port of Sunderland

• Relieve congestion on and allow enhanced priority for public transport and cyclists across the Wearmouth and Queen Alexandra bridges.

• Make a major contribution to the regeneration of the city centre and the Port of Sunderland.

• Reduce journey times and improve journey time reliability for people travelling by car, public transport and by bike on routes across the city.

• Open up the Metro to thousands of residents and workers in the Castletown area who will be a short walk across the river from Pallion Metro station.

• Improve journey times along the existing A1231 Wessington Way by reducing the number of roundabouts and improving the road surface.

Northern Spire is Phase 2 of the Sunderland Strategic Transport Corridor, which is a five-phase road enhancement scheme to improve links between the A19 and Sunderland City Centre and the Port of Sunderland.

Phase 1, the city centre St Mary's scheme, is already complete, and works for Phase 3, joining the bridge to the city centre, are planned for Winter 2018/19.

The property comprises a detached, single storey pavilion style office of brick construction beneath a pitched tiled roof, set within a landscaped environment.

The building was originally divided into 4 self-contained office suites but is currently arranged as two separate units.

Internally, the offices benefit from the following specification:

• Open plan layout
• Suspended ceilings
• Perimeter trunking
• Gas Central Heating
• Double Glazing
• Cat II lighting
• Male, Female and Disabled WC’s

The property benefits from 50 car parking spaces, providing a ratio of 1:27 sq m / 296 sq ft.

We estimate the site area to be approximately 0.51 hectares (1.27 acres).

A Phase I Environmental Risk Assessment was carried out by Delta Simons in May 2018 which concluded that “with regard to potential land contamination issues and associated environmental liabilities, in its current use, the Site represents an overall investment opportunity with a Low risk”. A copy of the report is available to download and is available for assignment to a purchaser.

Freehold (including a 999 year headlease which can be merged in the freehold reversion).

Unit 1 is let to Nissan Trading Europe Limited for a term of 5 years from 11th February, 2015, expiring on 10th February 2020. The current passing rent is £25,500 per annum (£73.70 per sq m / £6.85 per sq ft). The lease is inside 1954 Act protection.

The tenant has a right to use a designated area within the car park, plus a further two car parking spaces by way of a Licence.

Units 2,3a,3b & 4 are let to Avant Homes (England) Limited on an effectively Full Repairing and Insuring Lease for a term of 10 years from 4th August 2016, expiring on 3rd August 2026. The lease benefits from an upwards only rent review on 4th August 2021. There is a tenant’s break option on 3rd August 2021, subject to 6 months’ prior notice. The lease is inside 1954 Act protection.

The tenant has a right to use a designated area within the car park, subject to a minimum of 38 car parking spaces.

The current passing rent is £49,600 per annum (£48.22 per sq m / £4.48 per sq ft), rising to £99,200 per annum (£96.43 per sq m / £8.96 per sq ft) on 4th November 2018. In order that a purchaser does not suffer an income shortfall the vendor will top up the rent to £99,200 per annum on completion by way of an adjustment to the purchase price.

Therefore, an investor will benefit from a total income of £124,700 per annum.

We understand the rateable value for the property is as follows:

The Uniform Business Rate is 47.9 pence per pound for 2017/2018.

The vendor has elected the property for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

We are instructed to seek offers in the region of £1,300,000 (One Million, Three Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 9.0% and capital value of £946 per sq m / £88 per sq ft, assuming purchaser’s costs of 5.69%.