Run of The Mill, Spa Well Road, Blaydon, Gateshead, NE21 6RT

Investment Summary

An excellent opportunity to acquire a detached freehold leisure investment situated in Winlaton Mill, Blaydon on Tyne. The property consists of a prominent building subdivided into three distinctive units currently operating as restaurants, a café lounge, and a children's soft play centre.

The investment is fully let across three leases, generating a total passing rent of £88,000 per annum. This is set to increase to £90,500 per annum from 2nd March 2027, with the vendor providing a "top-up" on completion.

Location

The property is located in the attractive village of Winlaton Mill, fronting the A694. It occupies a highly visible position approximately 6 miles west of Newcastle city centre, situated mid-way between Gateshead and Rowlands Gill. The site is positioned immediately adjacent to a petrol filling station and car valeting centre, benefitting from high levels of passing traffic.

Accommodation

The building provides a total Net Internal Area of approximately 9,106.34 sq ft (846 sq m):

Unit 1: Ground floor restaurant - 2,489.28 sq ft (231.26 sq m).

Unit 2: Ground floor children's play centre - 4,152.11 sq ft (385.74 sq m).

Unit 3: First floor cocktail lounge - 2,464.96 sq ft (229.0 sq m).

The property further benefits from ample on-site car parking for customers.

Tenancy Information

Unit 1: Currently let at £25,000 per annum. The tenant has agreed to a reversionary 7-year lease expiring in March 2034 at a rent of £27,500 per annum.

Unit 2: Let to Pineapple and Bears Ltd on a new 7-year term from 1st May 2026 at £38,000 per annum.

Unit 3: Let to private individuals on a new 7-year lease at a rent of £25,000 per annum.

Tenure & VAT

The property is held Freehold under title number TY295561.

We understand the property is not elected for tax, therefore no VAT will be payable on the purchase price.

EPC

All three units within the building carry an Energy Performance Certificate rating of B.

Proposal

We are instructed to seek offers in excess of £900,000 (Nine Hundred Thousand Pounds). A purchase at this level reflects a Net Initial Yield of 9.52%, assuming purchaser's costs of 5.63%, and a low capital value of £98.83 per sq ft.