1 Fiennes Road, North West Industrial Estate

Peterlee SR8 2HY

Overview

  • Modern manufacturing/warehouse facility extending to 100,340 sq ft (9,321.88 sq m)
  • Excellent location on one of the region's most important industrial parks
  • North West Industrial Estate is a well-established location home to a number of household names
  • Let to an excellent covenant who are highly embedded, on a lease outside the LTA 1954 Act
  • Strong occupational market dynamics, with buoyant demand and severe stock shortages resulting in strong rental growth
  • Passing rent of £293,500 per annum reflecting a low rate of £3.00 per sq ft
  • Offers are sought in excess of £3,450,000 (Three Million, Four Hundred and Fifty Thousand Pounds) reflecting a Net Initial Yield of 7.99% after deducting purchaser's costs of 6.50%
  • A purchase at this level reflects a low capital value of only £35.27 per sq ft

Location

Peterlee is located in County Durham, 11 miles south of Sunderland, 23 miles south east of Newcastle and 20 miles north of Teesside.

The site benefits from excellent road communications and is close to the A19, providing access to the Tyne and Wear and North Yorkshire conurbations as well as merging with the A1(M) to the south.

The property is 10 miles east of Durham city centre which provides rail links via the East Coast mainline, with a journey time of 2 hours and 50 minutes to London King's Cross.

Daily scheduled flights operate to various UK and European destinations from both Durham Tees Valley Airport and Newcastle International Airport.

Situation

Peterlee is a New Town and is the largest settlement in East Durham, comprising a substantial town with a population of over 20,000 along with three industrial estates and two office parks.

Fiennes Road is situated on North West Industrial Estate, which provides over 4 million sq ft of industrial space, let to a range of international and national occupiers, attracted to the skilled workforce paired with excellent transport links.

A major occupier is Caterpillar UK, who occupy 11 buildings with over 1,400 employees, in their sole worldwide manufacturing plant for articulated dump trucks. NSK Bearings occupy several buildings on North West Industrial Estate employing over 400 people, with other major occupiers including TRW Automotive (who have a workforce in excess of 1,000), GT Group, BHK, Npower and Mecaplast.

The property occupies a prominent position on the estate, with easy access to the A19 which runs 1/2 mile from the subject property.

Description

The property comprises a modern purpose built manufacturing and warehouse unit, built in the mid 1990s. The property is of steel-portal frame construction with profile metal cladding under a dual pitched roof, which incorporates roof lighting.

The accommodation in the warehouse space is split into two linked bays together with mono pitch stores to both the eastern and southern elevations. The main warehouse area benefits from a minimum eaves height of 8 metres, increasing to 11.3 metres at the apex. The warehouse area is accessed via 3 x 5m sectional up and over doors.

Internally, the property provides excellent clear warehousing space together with an ancillary canteen and staff areas on the ground floor. The first floor contains high specification office space with suspended ceilings and perimeter trunking, leading to an external mezzanine area that overlooks the warehouse. The tenant has installed full height high density racking throughout the warehouse which provides 14,500 pallet positions.

Externally, there is a secure service yard with perimeter palisade fencing and a generous car parking area fronting the offices. To the east of the site is an area of grassed expansion land that is secured by perimeter fencing. The total site area is 2.09 ha (5.17 acres).


Tenure

The property is held on a long leasehold from the Homes & Communities Agency on three leases (one for the building and yard, one for the grassed expansion land and one for the strip of land fronting onto Davy Drive) for 125 years from 4 April 1996 at a peppercorn rent without review, leaving 103.5 years unexpired.

Tenancy

The property is let to Bristol Laboratories Limited on a FRI lease for a term of 3 years from 8 September 2016 under two identical, co-terminus leases at a total passing rent of £293,500.

The lease is excluded from the security of tenure provisions of the Landlord and Tenant Act 1954 and is subject to a Schedule of Condition which is available upon request.

Covenant Information

Bristol Laboratories Limited
Company Number: 03393503


Bristol Laboratories was established in 1997 and is a pharmaceutical company engaged in the development, manufacture, marketing and distribution of generic medicines across the UK and Europe. The company's head office is located in Berkhamsted with another manufacturing facility in Luton as well as subsidiaries operating in Spain, Germany and India.

Bristol Laboratories are well established in Peterlee and bought an 188,000 sq ft pharmaceutical manufacturing facility on Whitehouse Business Park in 2014, only 1/2 mile from the subject property.


VAT

The sale will be treated as a Transfer of Going Concern (TOGC).

Capital Allowances

No unclaimed capital allowances remain available.

EPC

The property has an Energy Performance Certificate rating of D(79).

Market Dynamics

The North East industrial market has performed strongly in the last 5 years, with occupier demand remaining buoyant constrained only by the lack of good quality stock in the 100,000 sq ft plus size range.

Caterpillar in Peterlee is a manufacturing success story with consistent high output that has translated into demand for industrial accommodation from firms in their supply chain. Hitachi's recently completed train manufacturing at Merchant Park in Newton Aycliffe is another boost for the local and regional economy, employing over 700 workers on site. Nissan continues its investment in the region post-Brexit with the manufacturing plant in Washington now producing over 500,000 cars per annum and being one of the 3 globally that produce the new Nissan Leaf model; the world's most popular electric vehicle.

The lack of quality industrial manufacturing and warehousing space with good connectivity in the 100,000 sq ft size range is providing significant upwards pressure on rents and resulting in numerous unfulfilledrequirements for the region as a whole.

Further information can be found in the marketing brochure.

Asset Management Potential

The tenant's nearby manufacturing facility, alongside the substantial investment in racking placed within the subject property, means that they are highly embedded in the unit, but significantly only on a short lease without security of tenure, giving obvious opportunity for a regear.

Rental growth in the market is strong against a low passing rent of only £3.00 per sq ft. Two nearby occupiers have recently enquired about taking the unit demonstrating the demand for the location.

Proposal

Offers are sought in excess of £3,450,000 (Three Million, Four Hundred and Fifty Thousand Pounds) reflecting a Net Initial Yield of 7.99% deducting costs of 6.50%.

Download Brochure



Google Maps

NET INITIAL YIELD:
7.99%
PRICE:
£3,450,000
REGISTER INTEREST
OR CONTACT US

Please select a contact *

 
 
 
 

(* Required Field)