stop Modern Office Investment for Sale - Singer Vielle Sales

Modern Office Investment

Unit 1 Ramparts Business Park | Berwick-Upon-Tweed | TD15 1UN

£625,000

asking price

SOLD

Summary

  • Modern self-contained office pavilion

  • Let to Berwick Borough Housing Limited (part of the Four Housing Group)

  • Re-geared and extended lease

  • Extensive tenant fit-out

  • 8.0% net initial yield

Location

The historic walled town of Berwick-upon-Tweed is the northernmost town in England and is located 4 km (2.5 miles) south of the Scottish border, at the mouth of the River Tweed on the east coast. It is approximately 90 km (56 miles) south east of Edinburgh and 105 km (65 miles) north of Newcastle upon Tyne and is served by the East Coast Mainline rail network giving regular access to Edinburgh and Newcastle.

Situation

Ramparts Business Park is prominently located adjacent to the A1 trunk road to the north of Berwick-upon-Tweed on the outskirts of the town centre. Ramparts benefits from its proximity to both the A1 and town centre which provide access to the surrounding area and local amenities.

The property is located on a recent 25 acre extension of the North Road trading estate to the north of the estate and is visible from the A1. The area has attracted a number of occupiers including Berwick Borough Housing, SWP Engineering, Ramparts Veterinary Centre, Demon Information Systems, Scottish Power and Northern Labs.

Description

Unit 1 was constructed in 2008 and is of steel frame construction with traditional cavity brick / block walls and a pitched timber truss roof and sits within a self-contained site with dedicated car parking.

Internally the building has been fitted to a high specification by the tenants who have spent in excess of £200,000. The internal specification includes;

• Modern lobby and reception hall
• Full raised access flooring
• LG7 lighting
• Comfort cooling
• 8 person passenger lift
• Full DDA access

Accommodation

We understand the property has the following net lettable floor areas:

Ground Floor 288.80 sq m 3,109 sq ft
First Floor 286.80 sq m 3,087 sq ft
Total 575.60 sq m 6,196 sq ft

Tenure

The interest for sale is a 125 year lease from 11th June 2008 between Berwick upon Tweed Borough Council and Gladman Developments Limited (currently vested in Dalshian LLP).

Tenancy

The premises were originally let to Berwick Borough Housing Association, now part of Four Housing Group, on a Full Repairing and Insuring lease for a term of 10 years with effect from 3rd November 2008 with a tenant only break option in 2013. The tenant did not exercise their break option in 2013 and the landlord took the opportunity to re-gear the lease by reducing the rent in return for the tenant extending the lease term. The lease now extends to November 2023 with no breaks.

The current passing rent is £52,500 (£91.21 per sq m / £8.47 per sq ft) and is subject a rent review on 3rd November 2018 based upon the Consumer Price Index (CPI).

Covenant

Berwick Borough Housing is part of the Four Housing Group. The group consists of 3 organisations with over 190 staff who are responsible for approximately 5000 houses. For further information please visit www.fourhousing.co.uk

Value Added Tax

Our clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price and we anticipate the sale will be treated as a TOGC.

Proposal

Our client is seeking a price of £625,000 (Six hundred and twenty-five thousand pounds), subject to contract, reflecting a net initial yield of 8.0%.

Investment Considerations

  1. Modern office pavilion;

  2. Let to secure tenant with 7.5 years unexpired lease term;

  3. Guaranteed uplift at review in 2018;

  4. Tenant spent considerable monies on internal fit-out demonstrating commitment to the property;

  5. A purchase at the asking price reflects an attractive net initial yield and a Capital Value equivalent to £100 per sq ft

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Graham Waddell graham@singervielle.co.uk +44 (0) 141 221 4545
Neil Singer neil@singervielle.co.uk  +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Richard Wolfryd richard@singervielle.co.uk +44 (0) 203 701 1353
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386

  

Vendors Solicitor

Wright Johnston MacKenzie  
Colin Brass cjb@wjm.co.uk +44 (0)141 248 3434

 

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