• To be sold by clicktopurchase® Best Offers by 2.00pm on Monday 14th February 2022, unless sold prior

• On behalf of Administrators, acting as agent without personal liability

• Attractive residential investment

• Conveniently located by Prudhoe train station

• Residential block comprising 14 two-bedroom apartments

• Let on AST’s

• Freehold

• £1,075,000, subject to contract

• 7.52% Gross Initial Yield

• 8.14% Gross Reversionary Yield

• Investment value below vacant possession value

The property is situated immediately adjacent to Prudhoe railway station and is accessed via Princess Way, close to its junction with Station Road. The access from Princes Way also serves an office proprety, Telecom House.

Prudhoe town centre is approximately 0.8 km (0.5 miles) to the south-east. The property is within an established residential and commercial area.

Tyneview Retail Park, a new retail and roadside development fronting Princes Way, is approximately 1.6 km (1 mile) to the east of the subject property. Extending to approximately 75,329 sq ft with 435 car parking spaces, the park consists of a number of national retailers including a 19,000 sq ft Aldi food store, a 22,000 sq ft B&M Homestore including a 75,000 sq ft garden centre, Greggs, McDonald’s and restaurant Café Ginevra. The retail park will also be complimented by additional retail and a drive-thru restaurant. The scheme has been developed by Prudhoe Estates, a joint partnership between Advance Northumberland and Northumberland Estates. It is anticipated that this new scheme will help attract new trade for the town, creating around 200 jobs.

The property comprises a former two-storey office building which we understand was converted in 2017 to provide 14 two-bedroom apartments.

The ground floor comprises a communal entrance foyer with security intercom, inner hallway and seven apartments, with a further seven apartments provided on the first floor. There is a landscaped and lawned area to the front of the building and 14 surfaced car parking spaces to the rear.

A Phase I Environmental Assessment was undertaken by Avison Young in December 2021 which concluded that “the site represents a Low Environmental Risk”. A copy of the report is available to download and will be assigned to a purchaser at a cost of £2,000 + VAT.

Freehold.

The sale is intended to be a transfer of a business as a going concern ("TOGC") albeit a non-opted TOGC if the Buyer is registered for VAT and is to take over the business of letting the Property.  If either of these assumptions are incorrect then the sale will be treated as an exempt supply for VAT purposes.

According to Zoopla, the average sale price for a flat in Prudhoe over the last 12 months is £83,000. Values appear to range between generally £75,000 to £100,000.

1. An attractive freehold residential investment;

2. The property is conveniently located adjacent to Prudhoe train station;

3. A recently converted residential block comprising 14 two-bedroom apartments;

4. Let on AST’s producing a total income of £80,880 per annum which will increase we suggest to £87,480 per annum when one recently vacated unit is re-let;

5. A purchase at the asking price reflects an attractive yield;

6. The investment value is underpinned by the vacant possession value.

The affairs, business and property of the Company is being managed by the Joint Administrators Andrew Knowles and Steven Muncaster, who act as agents for the Company and without personal liability. Both are licensed by the Insolvency Practitioners Association and are bound by the Insolvency Code of Ethics.

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