Mid-terrace steel portal frame industrial unit. Rental income £15,000 + vat per annum. Net internal area 272 sq. m. (2,929 sq. ft.) including mezzanine office. Attractive 8.5 % yield investment opportunity (after ground rent paid). 10 Year lease from April 2023 (Tenant break April 2028). Let to BNAC Ltd with personal guarantor. Excellent access to A1, Metrocentre and Scotswood Bridge.
Price £160,000 + vat
Ref I451
Location
The unit is situated on Derwenthaugh Marina on the southern bank of the River Tyne opposite the Vickers Armstrong factory and just north of the Derwenthaugh Road linking the A1 Western By-Pass with the Metro Centre and Scotswood Bridge. The unit is accessed via Chainbridge Road Industrial Estate.
Description
The property comprises a mid-terrace, single-storey industrial unit located at Derwenthaugh Marina, Blaydon. Constructed of steel portal frame with clad elevations and roof, the unit provides predominantly open-plan workshop accommodation together with WC facilities and a mezzanine office. Externally, the property benefits from designated parking to the front.
The property is let to BNAC Ltd (with personal guarantor) on a lease expiring 31 March 2033, subject to a tenant break option in April 2028 and three-yearly rent reviews. The current passing rent of £15,000 per annum (exclusive) offers an attractive income-producing investment opportunity with scope for future rental growth.
Floor Area
272.14 sq. m. (2,929 sq. ft.)
Lease & Tenant Information
Lease term - 1 Apr 2023 – 31 Mar 2033
Lease type - IRI (via underlease structure)
Rent reviews - Every 3 years (2029)
Tenant - BNAC Ltd (with personal guarantor)
Break clause - Year 5 (Apr 2028)
Rent deposit – Held
Rental Income
£15,000 + vat per annum
Yield
8.5 % (after ground rent paid)
Tenure
Leasehold - 125 years (less 3 days) from 21 March 2019
Ground Rent
£1,180 plus VAT (£1,416 inc VAT) (paid by Landlord)
Service Charge
£1,400 per annum (paid by tenant)
Insurance
£1,350 per annum (paid by tenant)
Viewing
Strictly by appointment through this office.
Rateable Value
The 2026 Rating List entry is Rateable Value £15,500
