Property

Investment Leisure

Run of the Mill, Spar Well Road, Winlaton Mill, Blaydon on Tyne, NE21 6RT

Unit 1 is let to private individuals on a 10 year lease ending 2 March 2027 at a rent of £25,000 per annum with rent reviews on 3 March 2021 and 3 March 2025.

Unit 2 is let to Pineapple and Bears Ltd on a 10 year lease from 12 Feb 2019 with a personal guarantee limited to the 11 February 2023. The annual rent is currently £25,000 per annum increasing to £32,000 per annum from 12 February 2022 and increasing further to £38,000 per annum on 12 February 2027. There are tenant breaks on 12 February 2023 and 12 February 2027 subject to 6 months’ notice.

Unit 3 is let to two private individuals at a rent of £15,000 per annum for a term of years ending on 2 March 2027. There are rent reviews on 17 May 2022 and 17 May 2026.

The total passing rent is therefore currently £65,000 per annum increasing to £72,000 per annum from 12 February 2022 and £78,000 per annum from 12 February 2027.

Offers in excess of £770,000 are invited for our client’s freehold interest reflecting a net initial yield of 8.01% increasing to 8.87% in February 2022 and 9.61% in February 2027. The vendor will top the rent up £72,000 pa to provide a NIY of 8.87% from completion of the sale.

LOCATION

Winlaton Mill is an attractive village in Tyne and Wear, North East England mid-way between Gateshead to the north east and Rowlands Gill to the south west. The village is on the A694 which joins the A1 at Swalwell and is close to the River Derwent. Winlaton Mill is located approximately 6 miles to the west of Newcastle city centre.

The subject property is situated to the east of Winlaton Mill fronting the A694 and is situated immediately next to a petrol filling station and car valeting centre.

TENANCY INFORMATION

Unit 1 is let to private individuals on a 10 year lease ending 2 March 2027 at a rent of £25,000 per annum with rent reviews on 3 March 2021 and 3 March 2025.

Unit 2 is let to Pineapple and Bears Ltd with a personal guarantee limited to the 11 February 2023 for a term of years beginning on 12 February 2019 to 11 February 2029. The annual rent is currently £25,000 per annum increasing to £32,000 per annum from 12 February 2022 and increases further to £38,000 per annum on 12 February 2027. There are tenant breaks on 12 February 2023 and 12 February 2027 subject to 6 months’ notice.

Unit 3 is let to two private individuals at a rent of £15,000 per annum for a term of years ending on 2 March 2027. There are tenant reviews on 17 May 2022 and 17 May 2026.

The total passing rent is therefore currently £65,000 per annum increasing to £72,000 per annum from 12 February 2022 and £78,000 per annum from 12 February 2027.

ACCOMMODATION

 

The net internal floor areas are as follows:

 

AddressDescriptionArea

(sq m)

Area

(sq ft)

Unit 1Ground floor restaurant231.26 

2,489.28

Unit 2Ground floor children’s play centre385.74 

 

4,152.11

Unit 3First floor cocktail lounge229.0 

2,464.96

TOTAL846 

9,106.34

 

EPC

The EPCs have been commissioned and will be available shortly.

VAT

We understand the properties are not elected for tax and therefore no VAT is payable.

TENURE

The property is held freehold

LEGAL COSTS

Each party is to be responsible for their own costs incurred in the transaction.

AML REGULATIONS

In accordance with anti-money laundering regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser.

PROPOSAL

Offers in excess of £770,000 are invited for our client’s freehold interest reflecting a net initial yield of 8.01% increasing to 8.87% in February 2022 and 9.61% in February 2027. The vendor will top the rent up £72,000 pa to provide a NIY of 8.87% from completion of the sale.

  • Location: Gateshead
  • Tenure: Freehold
  • Footage: Total - 9,106.34 sq ft
  • Price: OIE of £770,000
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