Retail premises for sale in Newbiggin Road, Ashington NE63

Investment summary

Located in Ashington, Northumberland with existing population of 28,000 (c2021) and wider County population of 319,000 (c2021)

Within a densely populated residential location, close to nearby schools, Ashington town centre, leisure centre, football club and Wansbeck General Hospital

The property comprises a new build retail parade with 45 car parking spaces, of which 8 are under offer to Osprey Charging Network

The building is prominently positioned on a busy main road alongside a new build housing estate of 259 units developed by Bellway

The property is split into three units and entirely let to undoubted covenants of Co-op, Montane, Cooplands and under offer to Osprey Charging Network

Total income of £142,360 per annum

WAULT of 8.95 years to breaks and 12.26 years to lease ends

Index linked rent reviews on over 62% of the income

Over 47% of the annual income is from Co-operative Group Food Limited with lease expiry in 2036 (without breaks)

We are instructed to seek offers in excess of £2,250,000 (exclusive of VAT), reflecting a net initial yield of 5.95% and a reversionary yield of 6.40%* assuming standard purchasers costs of 6.33%.

Location

Northumberland is a county in North East England, bordering Scotland, with a population of just over 319,000 people.

Northumberland is known for its beautiful countryside, including the Northumberland National Park, as well as its historic castles and villages. The county is also home to a number of beaches, including Bamburgh Beach and Embleton Beach, as well as picturesque villages, such as Seahouses, Amble, and Morpeth.

The property is located south of Ashington Town Centre, close to a number of amenities, including shops, restaurants, and green open spaces. The property is also within walking distance of the town centre, Ashington Leisure Centre and Bus Station, providing ease of access to Newcastle city centre and other cities in the UK. There are a number of landmarks nearby, including the Jack Charlton Statue, Woodhorn Colliery, and Hunkleton Stone. The Queen Elizabeth II Country Park is also within easy reach.

Ashington has a strong range of schools, catering for children of all ages including Ashington Academy, comprehensive school as well as a number of primary schools, including Ashington Hirst First School, and Newbiggin Middle School. Wansbeck General Hospital and Ashington Community Football Club are also nearby.

Situation

The property is prominently positioned on Newbiggin Road in an area known locally as North Seaton, situated south of Ashington Town Centre within a densely populated residential location. The property is immediately to the north of a new build housing development of 259 homes, constructed by Bellway.

James Knott Primary School is 0.7 miles to the west of the property. Less than 1 mile to the west there is also a retail warehouse scheme comprising B&M, Carpetright as well as trade counter units such as Screwfix, Tool Station and Wolseley in addition to several car dealers, including a Vauxhall dealership.

Description

Constructed in 2021, the property comprises a single storey building with part brick, part profile sheet walls under a pitched profile sheet roof. The building has been split to provide three retail units with shop fronts, fronting Newbiggin Road and loading to the rear via communal access over the car park.

Accommodation

Total floor area of 976 sq m / 10,501 sq ft

There are 45 car parking spaces, 5 of which are disabled bays. A further 8 bays are under offer to Osprey Charging Network.

Site area

The property comprises a broadly rectangular site of 1.15 acres.

Tenancy schedule

Unit 1 is let to Cooplands & Son (Scarborough) Limited trading as Cooplands on a lease dated the 13th May 2021 for a term of 10 years from the 24th June 2021. The lease expires on the 23rd June 2031 and there is a tenant only option to break on the 24th June 2026 subject to six months’ notice. There is also an upwards only rent review on the 24th June 2026. The rent is currently £18,360 per annum.

Unit 2 is let two Montane Limited trading as Montane on at lease dated the 5th April 2022 for a term of 10 years commencing the 5th April 2022. The lease expires on the 4th April 2032 and there is a tenant option to break on the 5th April 2027 subject to six months’ notice. There is also an upwards only rent review on the 5th April 2027. The current rent is £33,000 per annum which increases to £36,000 per annum on the 5th April 2024. The rent will be topped up to £36,000 on completion of the lease by way of a reduction to the purchase price.

Unit 3 is let to Cooperative Group Food Limited trading as Co-op on an unbroken lease dated the 15th June 2021 for a term of 15 years commencing on the 18th March 2021. The lease ends on the 17th of March 2036 and there are no breaks. There is a rent review on 18th March 2026 and five yearly thereafter, which are rpi linked compounded each year with a 1% caller and 3% cap. The current passing rent is £68,000 per annum.

Eight of the car parking spaces are under offer to Osprey Charging Network Limited for ev charging on a new 25 year lease with 15 year break. The lease is also subject to five yearly cpi linked rent reviews compounded annually with a 1% collar and a 3% cap. The current rent is £20,000 per annum, equivalent to £2,500 per space.

Total passing rent of £142,360 per annum.

WAULT of 8.95 years to breaks and 12.26 years to lease ends.

Proposal

We are instructed to seek offers in excess of £2,250,000 (exclusive of VAT), reflecting a net initial yield of 5.95% and a reversionary yield of 6.40%* assuming standard purchasers costs of 6.33%.