Residential Investment at Discount to Vacant Possession Value, offered on behalf of Administrators
Brock House | Princess Way | Prudhoe | Northumberland | NE42 6NJ
subject to contract
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
£1,075,000, subject to contract
7.52% Gross Initial Yield
8.14% Gross Reversionary Yield
Investment value below vacant possession value
Prudhoe is located in Northumberland, approximately 18 km (11 miles) west of Newcastle upon Tyne and 35 km (22 miles) north-west of Durham.
Prudhoe benefits from good road communications being linked to Newcastle upon Tyne and the A1 by the A69. The town is also connected to the national railway network with a fastest journey time to Newcastle of 20 minutes. Newcastle Airport is approximately 11 miles to the north-east.
Prudhoe Castle, dating back to the 1066 Norman conquest, is a popular visitor attraction.
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.
The property has been measured by BKR Floor Plans and provides the following Gross Internal floor areas:
|Ground Floor||6,144 sq ft||570.78 sq m|
|First Floor||6,144 sq ft||570.78 sq m|
|Total||12,288 sq ft||1,141.56 sq m|
|Flat 1||610 sq ft||56.67 sq m|
|Flat 2||651 sq ft||60.48 sq m|
|Flat 3||611 sq ft||56.76 sq m|
|Flat 4||691 sq ft||64.19 sq m|
|Flat 5||704 sq ft||65.40 sq m|
|Flat 6||802 sq ft||74.51 sq m|
|Flat 7||801 sq ft||74.41 sq m|
|Flat 8||610 sq ft||56.67 sq m|
|Flat 9||651 sq ft||60.48 sq m|
|Flat 10||611 sq ft||56.76 sq m|
|Flat 11||739 sq ft||68.65 sq m|
|Flat 12||704 sq ft||65.40 sq m|
|Flat 13||802 sq ft||74.51 sq m|
|Flat 14||801 sq ft||74.41 sq m|
A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £575.00 + VAT.
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.
We understand from the information provided that the apartments are let on Assured Shorthold Tenant (AST) agreements, producing the following income:
|Flat No.||Rent (PCM)||Rent (PA)|
Please refer to the tenancy schedule provided. On re-letting the vacant flat, it is suggested that the income will rise to £87,480 per annum.
**See updated tenancy schedule in Downloads section dated 2nd Feb 2022.
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.
We are instructed to seek a figure of £1,075,000 (One Million and Seventy Five Thousand Pounds), subject to contract, reflecting a gross initial yield of 7.52% and a reversionary yield of 8.14%.
A purchase at the asking price reflects a discount to the reported vacant possession values at only £77,000 per flat. Therefore, the investment value is underpinned by the vacant possession value.
Please note that a purchaser will be re-charged the costs of the measured survey (£575 + VAT), the environmental report (£2,000 + VAT) and searches (£358.23) which are provided in the data room.
Please note that the adjoining office investment Telecom House (click here) is being offered for sale. Hence, the opportunity exists to purchase both investments.
An attractive freehold residential investment;
The property is conveniently located adjacent to Prudhoe train station;
A recently converted residential block comprising 14 two-bedroom apartments;
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;
A purchase at the asking price reflects an attractive yield;
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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