LOFTUS HOUSE COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB - LOOPNET
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High Yielding Office Investment - For Sale
Loftus House
mellersh
& harding Colima Avenue, Sunderland Enterprise Park,
Sunderland, Tyne And Wear SR5 3XB
Investment Summary
• Modern detached office building.
• Freehold.
• Established business location with
occupiers including The Secretary of State,
Balfour Beatty, TSB, NHS, Taylor Wimpey
and BGL Group.
• Total net internal area of 1,835.4 sq m
(19,757 sq ft).
• Entirely let to RTC North Limited on a 10
year lease commencing 29th March 2016,
subject to an upwards only rent review and
tenant break in March 2021.
• Passing rent of £156,328 pax reflecting a
conservative level of £7.91 psf.
• Seeking offers of £1,500,000 (One Million
Five Hundred Thousand Pounds) subject
to contract. A purchase at this level will
reflect an attractive net initial yield of
9.80% assuming purchaser’s costs of 6.10%
and a capital value of £76 psf.
LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 2
NISSAN EVANS
SALAMANDER
CAR HALSHAW
PUMPS
HELENA AVANT TAYLOR PLANT RENAULT
SAFE
BIOSCIENCES HOMES WIMPEY KAIL STORE MCDONALD’S KFC
SA
HYLTON
Loftus House RIVERSIDE
RETAIL PARK:
PETS AT HOME
GREGGS
ARGOS
ALDI
B+M
COSTA
MATALAN
POUNDLAND
PEACOCKS
CARD FACTORY
NEW WEAR
CROSSING
OPENING
SPRING 2018
NHS TSB BRASHER FUSION PREMIER DW SPORTS SAINSBURY’S
AND CONTACT INN FITNESS
BERGHAUS CENTRE
LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 3
Location
Sunderland is a major City within the North East of England and is WA
SH
located approximately 12 miles south east of Newcastle upon Tyne. ING
TO
N RD
The City has a population of approximately 275,506 (2011 Census) N HYLTON
RD
RD
SOUTHWICK
and a catchment population of 420,268 (2011 Census). Loftus House
CRAIGAVON
A19 INDUSTRIAL ESTATE
lies close to the A19 trunk road that links Teesside and Yorkshire to RIVERSIDE
RD RD
the A1 north of Newcastle via the Tyne Tunnel. CASTL E TO
WN
WESSINGTON WAY
31 HYLTO
A12
N PA
There are direct trains from Sunderland to Newcastle with a fastest
D
RK R
TLE R
RD D
CH
journey time of 19 minutes. There are also direct train services R BEA
CAS
BE
to London King’s Cross from Sunderland with a journey time of ERR
TIM
HYLTON
TT T R
approximately 3 hours and 20 minutes. Major employers within CE
WEA
AY
FAW
ER
W
the Sunderland area include Nissan, Sunderland University, TSB, RIV NEW
ON
WEAR
Sunderland City Council and Asda Group plc. GRANGE RD
GT
N CROSSING
RIN GWAY
SSI Loftus House
WE A AVE
AY
DW
FER
PALLION
Sunderland is currently benefitting from an extensive regeneration LIM
OA
CO
RY
1
123
BR
programme, with over £1bn of investment scheduled by 2024.
BO
A
E
AT
TH
LN
PALLION
INDUSTRIAL ESTATE
NEWCASTLE A19
GATESHEAD
A184
A184
A1018
A19
A1 A194(M)
A1 A1231 A1290
ANGEL OF Loftus House
THE NORTH
A1231
A1231 SUNDERLAND
65
A1231
WASHINGTON
A1(M) A690
A1018
64 A19
LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 4
Situation
Sunderland Enterprise Park was developed as part of the
Sunderland Enterprise Zone in the 1990’s and is located two
miles to the north west of the City Centre. Wessington Way
is the main route into the City Centre north of the River Wear
from the A19. The premises are situated approximately half
a mile from the A19. Other occupiers on the Park include
TSB, Taylor Wimpey, Brasher & Berghaus and the NHS. Local
amenities include DW Sports Fitness, McDonalds and the
Hylton Retail Park with occupiers including Costa Coffee, Aldi
and Argos.
Sunderland Enterprise Park has regular bus services to the City
Centre, with a bus stop directly opposite Loftus House.
Sunderland City Council started construction on the new
£118m Wear Crossing development in early 2016 and it is
set to complete in June 2018. Situated between the Queen
Alexandra Bridge and Hylton Bridge, the crossing will be
in close proximity to the subject property. The bridge will
directly benefit the Sunderland Enterprise Park by significantly
reducing journey times into the City Centre.
N
Not to scale. For indicative purposes only.
LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 5
Description Accommodation
Loftus House comprises a modern two storey building of From measurements taken on site we calculate the
steel frame construction with external brick faced cavity approximate Net Internal floor areas to be as follows:-
walling. To the main entrance on the southern elevation, this
is supplemented with glass curtain walling which creates a
two storey atrium reception/entrance area. Ground Floor Reception 33.6 sq m 362 sq ft
Ground Floor Offices 901.5 sq m 9,704 sq ft
The building provides open plan offices with perimeter
trunking, suspended mineral fibre ceilings, recessed lighting, First Floor Offices 900.3 sq m 9,691 sq ft
comfort cooling and central heating throughout. There Total 1,835.4 sq m 19,757 sq ft
are male and female toilets on each floor with ground floor
disabled facilities and a small shower room. There is an 8
person lift and on site parking for 80 cars (1:247 sq ft). The total site area is approximately 0.53 Hectares (1.31
Acres).
LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 6
Tenure Tenancy Tenant’s Covenant
The property is held freehold. Loftus House is entirely let to RTC North Limited RTC North originated as the Regional Technology
on a 10 year full repairing and insuring lease Centre (RTC) for the North East and Cumbria – one
commencing on 29th March 2016, at a rent of of a network of twelve centres set up by National
£156,328 per annum reflecting £7.91 per sq ft. The Government in 1987.
tenant was granted 12 months rent free spread over
the first 2 years of the lease. The vendor will “top up” Specialising in the commercialisation of new
the rent to £156,328 per annum from completion. products and services, RTC work with individuals,
There is an upwards only rent review and a tenant’s businesses and the public sector to help create
option to determine the lease on the 29th March more innovative and vibrant economies. RTC help
2021 subject to 6 months notice. organisations with all stages of the innovation and
intellectual property commercialisation process and
RTC North sublet part of the 1st floor currently use this expertise to support their partners
accommodation to Northern Housing Consortium at a National and European level.
Limited. In line with RTC’s business model as a
partner for growing businesses, they are able to RTC’s board of directors includes leaders from
sublet part of the building on flexible tenancies. some of the North East’s principal companies and
organisations including: Nissan, Northumbrian
Water, Accenture UK, Durham University, Newcastle
University and Tait Walker.
For the year ended 31st March 2016 RTC North
Limited reported Shareholder funds of £1,921,807
a 5.9% increase on 2015’s Shareholder funds of
£1,815,077. RTC North has a Creditsafe rating of
68/100 which represents a Low Risk of business
failure.
LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 7
Rental Commentary
The initial rent of £156,328 pax reflects a conservative level of only £7.91 psf. Recent rental transactions include the following:
Date Address Tenant Rent pa Rent psf Area (net internal)
February 2017 Waterside House, Sunderland Enterprise Park The Secretary of State £335,000 £9.12 36,718 sq ft
November 2016 Tyne River House, Gateshead Teleperformance Limited £423,080 £14.10 29,999 sq ft
September 2016 Rapier House, Sunderland Enterprise Park Taylor Wimpey UK Limited £95,000 £10.55 9,996 sq ft
May 2015 Riverside House, Sunderland Enterprise Park Lloyds Banking Group £213,000 £7.50 28,400 sq ft
LOFTUS HOUSE, COLIMA AVENUE, SUNDERLAND ENTERPRISE PARK, SUNDERLAND, TYNE AND WEAR SR5 3XB 8
Loftus House
Colima Avenue, Sunderland Enterprise Park,
Sunderland, Tyne And Wear SR5 3XB
VAT
The property has been elected for VAT and the sale of the
property will be dealt with as a Transfer of a Going Concern
(TOGC).
EPC
The property has an EPC rating of D (90). A full EPC is
available on request.
PROPOSAL
We are instructed to seek offers of £1,500,000 ( One
Million, Five Hundred Thousand Pounds) for our clients
freehold interest in the above property subject to contract
and exclusive of VAT. A purchase at this level reflects an
attractive net initial yield of 9.80% assuming purchaser’s
costs of 6.10% and a capital value of £76 psf.
FURTHER INFORMATION
Should you require any further information or wish to make
an inspection, please do not hesitate to contact the sole
agents.
mellersh
MISREPRESENTATION ACT 1967
Mellersh & Harding LLP for themselves, hereby give notice that: (i) These particulars do not constitute any
& harding
part of an offer or contract. (ii) Mellersh & Harding LLP accept no legal responsibility for any statement or
representation whether written, oral or implied or whether contained in any advertisement particulars or
other matters issued by any correspondence entered into by them and whether made in any antecedent
020 7522 8500
present or subsequent enquiries or negotiations. (iii) Neither Mellersh & Harding LLP nor their principals,
agents, servants or representatives have any authority whatsoever to make or give any representation or
www.mellersh.co.uk
warranty whatsoever whether written or implied in relation to this property. (iv) Any intending purchaser
must satisfy himself by inspection or otherwise as to the correctness of any antecedent present or
subsequent statements or representations, and should not rely upon the same unless he has satisfied Jeremy Waterworth David Mundy
himself accordingly. (v) Unless otherwise stated, all prices and rents are quoted exclusive of Value Added
Tax Direct Dial: 020 7522 8504 Direct Dial: 020 7522 8513
(VAT). Any intending purchasers or lessees must satisfy themselves independently as to the incidence of
VAT in respect of any transaction. Mobile: 07471 356565 Mobile: 07880 740507
NOTE. The enclosed plans are based upon the Ordnance Survey Map with the sanction of the Controller
of H M Stationery Office (Crown Copyright Reserved), Chas E Goad Limited, Geographia Limited and
Email: jwaterworth@mellersh.co.uk Email: dmundy@mellersh.co.uk
Geographers A-Z Map Co Limited, where applicable. These plans are published for the purposes of
identification only and, although believed to be correct, their accuracy is not guaranteed and they do not
form any part of any Contract. Details prepared May 2017
9
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