• Multi-let roadside commercial investment

• Highly prominent roadside location fronting the busy A695

• Fully income producing

• Low passing rents

• Add value opportunities including potential to develop a further unit on the site

• Offers in the region of £3,100,000, subject to contract

• 7.25% Net Initial Yield

• 8.0% Guaranteed Reversionary Yield in March 2019

The subject property occupies a highly prominent position fronting the busy A695 (Chainbridge Road), approximately 1.6 km (1 mile) east of Blaydon town centre. The A695 dual carriageway experiences a high volume of traffic which the property benefits from. The site is also highly visible from the A1 Western Bypass Bridge.

The property is in a well-established commercial location, forming part of the wider Chain Bridge Trading Estate. The surrounding area benefits from a variety of uses including industrial, trade counter and retail. Blaydon Park Trade Park is directly opposite the subject property.

The intu Metrocentre, Europe’s largest covered shopping and leisure centre, is approximately 3.2 km (2 miles) to the south-east. With a catchment population of 2.6 million and an annual footfall of 21 million, the centre attracts visitors across the north-east and as far afield as Edinburgh. The centre hosts over 300 shops with stores including Debenhams, Zara, Primark, Apple, TopShop, All Saints, H&M, J D Sports, plus a 12 screen Odeon IMAX cinema (Source: www.intugroup.co.uk).

Team Valley Trading Estate is approximately 6.4 km (4 miles) to the south-east. One of the largest commercial estates in Europe, Team Valley is home to 700 businesses and over 25,000 employees, providing a range of office and industrial premises.

The property comprises a mixed use building incorporating retail showrooms, trade counter, industrial units and a gymnasium, totalling 4687 sq m (50,453 sq ft), together with two advertising hoardings.

The building is of steel frame construction, incorporating a mixture of rendered and profile metal sheet clad walls, with metal trussed pitched roofing.

The showroom units (Units 4&5) are situated to the front of the building with trade counters to the north elevation and an industrial unit to the rear (eastern elevation).

The trade counter and industrial use units have a useable eaves height of approximately 5.11 m (16 ft 9 inches). Externally there is a yard area with loading areas to the northern and rear elevations with a larger parking area to the north and front of the building.

The gymnasium (Units 7&8) is situated at first floor level, above retail units 4&5 (Beds4U and HSL).

On 18 December 2014 the following planning consent was granted for the construction of a single storey trading unit to the east of the site, providing an internal area of approximately 500 sq m (5,382 sq ft), along with refurbishment works to the existing units:

Planning permission (reference DC/14/01204/FUL) for the “erection of a new building for B2 (General Industry) and B8 (Storage and Distribution) use. Refurbishment of existing units including external alterations to the east elevations of the units and reconfiguration of the car park”.

Although the planning consent has now lapsed, it is reasonable to suggest that Gateshead Council would grant planning permission if a new application was submitted.

A copy of the planning permission, along with the architect’s Design and Access Statement are available to download.

The Uniform Business Rate is 46.6 pence per pound for rateable values below £51,000.

Freehold.

The property is fully let to 7 tenants, plus two advertising hoardings, in accordance with the attached tenancy schedule. The total current income is £239,390 per annum, rising to £263,293 per annum in March 2019.

The weighted average unexpired lease term (WAULT) to expiry is 4.2 years.

The leases are internal repairing and insuring with the tenants contributing towards a service charge for recovery on the fabric and external area maintenance. There are no shortfalls and the service charge budget for 2018 is £33,215.00. The Service Charge Accounts and the Service Charge Budgets are available to download.

The property has been registered 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 £3,100,000 (Three Million One Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 7.25%, rising to a guaranteed 8.0% in March 2019, assuming standard purchaser’s costs of 6.16%.