Office Park Investment, City West Business Park, St Johns Road, Meadowfield DH7 8ER

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