Office - Investment - Bede House - Newcastle Upon Tyne
- Rental income of £368,317 per annum reflecting a low average annual rent of £9.40 per sq ft. The vendor will provide a service charge, rates and insurance guarantee for the void suite for 12 months to maintain the net income level.
- Strong tenant covenant line up with all tenants providing a ‘low’ or ‘very low’ Creditsafe rating.
- Asset management opportunities include letting the remaining suite and refurbishing accommodation to a Grade A specification to increase ERV substantially, and restructure leases to remove tenant break options and extend lease lengths.
- Excellent rental growth potential at upcoming reviews, with the average rent passing well below latest lettings within the building.
- Offers sought in excess of £3,950,000 (Three Million, Nine Hundred and Fifty Thousand Pounds), reflecting a net initial yield of 8.75% after purchaser’s costs of 6.53% and a low capital value of £104 per sq ft.
Bede House comprises 3,523.61 sq m (37,929 sq ft) of office accommodation over ground and three upper floors. The building is of concrete frame construction with concrete cladding to the external elevations, with prominent stone-clad stairwells to the northern and southern frontages.
Internally, the office floor plates are fully refurbished, providing open plan suites arranged over predominantly raised access floors, with suspended ceilings. The flexible open floor plates allow for a variety of configurations including open plan, modular and cellular format.
Newcastle upon Tyne is located approximately 286 miles north of London and 105 miles south of Edinburgh and is the commercial and administrative capital of the North East, located in the county of Tyne and Wear. Newcastle is the seventh largest city in the UK with a population of approximately 273,000 people, extending to in excess of 1,000,000 people within the wider Tyneside conurbation.
Bede House occupies a prominent position adjacent to the A167(M) Central Motorway, at the eastern side of the Tyne Bridge. The property forms part of a larger development known as All Saints Business Centre. The site topography means that Bede House is highly visible to vehicular users on one of the city’s primary north/south circulation routes.