£1,100,000
(£64.55/sq. ft)
Office for saleOffice Park Investment, City West Business Park, St Johns Road, Meadowfield DH7
17,042 sq. ft
Freehold
About this property
Hybrid Mixed Use Office Park Investment
Freehold Estate
22 Buildings poviding 17,042 sq ft NIA
79% Let
Opportunity for reversionary rent
The properties are located within County Durham, in the North East of England. County Durham has a population of approx. 522,100 persons and covers an area of 233,260 hectares with 12 major centres including Durham City, Darlington, Peterlee, Hartlepool and Newton Aycliffe.
The area is characterised by a mix of office, industrial, trade counter and motor retail. The estate is close to residential catchments to the South of Durham City and provides a convenient and attractive environment for a variety of businesses.
Estate charge
The estate charge is currently running at low £1.85 per sq ft.
Budget of £65,558 (Year ending 31 December 2025). Caps on Units 15&16 (£826), Unit 21 (£3,732). Shortfall of £2,990 all attributed to Units 15&16 picked up by the ll. Landlords costs associated with the void units (Units 7&8 + ff Unit 22) = £15,046
Total ll costs on sc = £15,046 + £2,990 = £18,036 per budget year.
Asset management
• Refurbish and relet/sell units 7&8 as whole or split or re subdivide to add income reduce void costs.
• Negotiate lease renewal and regear on units 15/16 holding over from January 2017 at £15,000 pax (£5.22 psf). Market rent estimate £24,429 (£8.50 psf). See Caps under estate charge.
• Take an early surrender on Unit 22c (former Café) and re let to add amenity to the estate. Potential to drive rent on a more retail basis, or sell building into active market.
• Relet small ff suites on Unit 22. Interest in a new overriding lease on whole not instigated by ll.
• Drive further llh sales at + £80 psf. (Last transaction 2022 before true pandemic inflationary build costs.)
Covenant
The income is diversified by virtue of the number of tenants. The tenant mix is a of regional and local covenants.
EPC
As per schedule. Further information and a copy of the EPCs are available upon request. All band B.
Proposal
We are instructed to seek offers at £1,100,000 (One Million One Hundred Thousand Pounds exclusive), subject to contact and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 7.83% ni (allowing for purchaser’s costs at 5.85%) and a potential reversionary yield of 13%+ on new lettings reflecting a Capital Value of £64.55 psf
VAT
The property has been elected for VAT and it is envisaged that the transaction will be treated as a togc.
Money laundering
In accordance with the Anti-Money Laundering Regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser.
Accommodation:
3A - ff: 718.00 sqft
3B - gf: 718.00 sqft
7A, 7B, 7C: 1,437.00 sqft
8A & 8B: 1,437.00 sqft
11: 1,436.00 sqft
12: 1,440.00 sqft
13: 1,436.00 sqft
15 & 16: 2,674.00 sqft
17: 1,436.00 sqft
19 & 20: 2,874.00 sqft
22A: 359.00 sqft
22B: 359.00 sqft
22C: 718.00 sqft
Total: 17,042.00 sqft
The area is characterised by a mix of office, industrial, trade counter and motor retail. The estate is close to residential catchments to the South of Durham City and provides a convenient and attractive environment for a variety of businesses.
Estate charge
The estate charge is currently running at low £1.85 per sq ft.
Budget of £65,558 (Year ending 31 December 2025). Caps on Units 15&16 (£826), Unit 21 (£3,732). Shortfall of £2,990 all attributed to Units 15&16 picked up by the ll. Landlords costs associated with the void units (Units 7&8 + ff Unit 22) = £15,046
Total ll costs on sc = £15,046 + £2,990 = £18,036 per budget year.
Asset management
• Refurbish and relet/sell units 7&8 as whole or split or re subdivide to add income reduce void costs.
• Negotiate lease renewal and regear on units 15/16 holding over from January 2017 at £15,000 pax (£5.22 psf). Market rent estimate £24,429 (£8.50 psf). See Caps under estate charge.
• Take an early surrender on Unit 22c (former Café) and re let to add amenity to the estate. Potential to drive rent on a more retail basis, or sell building into active market.
• Relet small ff suites on Unit 22. Interest in a new overriding lease on whole not instigated by ll.
• Drive further llh sales at + £80 psf. (Last transaction 2022 before true pandemic inflationary build costs.)
Covenant
The income is diversified by virtue of the number of tenants. The tenant mix is a of regional and local covenants.
EPC
As per schedule. Further information and a copy of the EPCs are available upon request. All band B.
Proposal
We are instructed to seek offers at £1,100,000 (One Million One Hundred Thousand Pounds exclusive), subject to contact and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 7.83% ni (allowing for purchaser’s costs at 5.85%) and a potential reversionary yield of 13%+ on new lettings reflecting a Capital Value of £64.55 psf
VAT
The property has been elected for VAT and it is envisaged that the transaction will be treated as a togc.
Money laundering
In accordance with the Anti-Money Laundering Regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser.
Accommodation:
3A - ff: 718.00 sqft
3B - gf: 718.00 sqft
7A, 7B, 7C: 1,437.00 sqft
8A & 8B: 1,437.00 sqft
11: 1,436.00 sqft
12: 1,440.00 sqft
13: 1,436.00 sqft
15 & 16: 2,674.00 sqft
17: 1,436.00 sqft
19 & 20: 2,874.00 sqft
22A: 359.00 sqft
22B: 359.00 sqft
22C: 718.00 sqft
Total: 17,042.00 sqft
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