INVESTMENT HIGHLIGHTS

• Prominent Corner Position in the heart of the city.

• High Quality predominantly refurbished offi ce and retail building.

• Fully let to Seven quality tenants

• Income £268,110 per annum

• £2.95m -net initial yield of 8.6% after allowing 5.8% purchasers costs.

• Low Capital Value of just £151 per sq ft.

COLLINGWOODH O U S E3 Collingwood Street | Newcastle upon Tyne | NE1 1JW

City Centre multi-Let mixed Commercial Investment For Sale

LOCATIONNewcastle upon Tyne is the regional capital of the North East of England within the urban district of Tyne and Wear. Newcastle is well connected to all parts of the UK being adjacent to the A1 that links London with Edinburgh. The East Coast mainline that links London Kings Cross Edinburgh, Glasgow, Aberdeen and Inverness runs through the city and provides 32 daily services to London with a journey time of just 2 hours 50 minutes.

Newcastle International Airport benefi ts from direct fl ights to London, Europe as well as other international destinations including New York and Dubai.

Newcastle off ers excellent retail facilities with shopping on Northumberland Street and Eldon Square, and the metro Centre out of town retail complex a short distance away.

Newcastle is home to a number of large scale offi ce occupiers including Sage, Greggs, Procter and Gamble and Virgin money. All of the main banks and accountancy fi rms are located in the City.

A1(M)

A1(M)

A194(M)

A69

A68

A68

A68A688

A67

A689

A69

A691

A1A19

A184A1018

A179

A66A174

A19

A689

Whitley Bay

Newcastle upon Tyne

South Shields

SunderlandWashington

Durham

Hartlepool

Middlesbrough

Darlington

Cramlington Seaton Sluice

Gateshead

Consett

Bishop Auckland

Newton Aycli�e

Sedgefield

Peterlee

SeahamHoughton le Spring

Newcastle

Central

St James

MonumentManors

Manors

Melbourne St

Gallowgate

Clayt

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t A186A167(M)

Neville St

St

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THEATRE ROYAL NEWCASTLE

A186

River Tyne

Gateshead Millennium

Bridge

Sage Gateshead

Wellington St

A186

M

MM

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A1 Gosforth

South/A1

COLLINGWOODH O U S E

Time Central/Welbar HouseEldon Square Shopping

55o North

Quayside

Centre for Life

Newcastle Central Station

Stephenson Quarter

Grey Street m

m

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Central Square

COLLINGWOODH O U S ECH

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SITUATIONCollingwood House is located within the heart of the Newcastle’s commercial centre, at the corner of Collingwood St and St Nicholas Street, close to Grey Street. It sits opposite the Cathedral, one of Newcastles more iconic buildings. The area has become one of the City’s prime leisure locations and offers a cosmopolitan mix of bars, restaurants as well as office accommodation.

Newcastle Central Station and Metro Transport systems are just two minutes to the west of the property where the streetscape has been recently upgraded outside Central Station in a £20m improvement project.

DESCRIPTIONCollingwood House comprises a prominent corner building offering two retail units over ground and basement and 6 upper floors with independent access from the street.

The stone clad building dates from the 1970’s. The retail units are contained within regular shaped units. The offices are accessed by way of a recently refurbished entrance lobby with a new lift.

The suites, many of which have been refurbished by the landlord prior to occupation, are essentially open plan and air conditioned with W/c facilities within the demise. Kitchenettes are also provided within each suite.

TENUREFreehold

TENANCY SCHEDULE

UNIT FLOOR AREA

TENANTS INFORmATION

LEASE TERmS RENT (PA) COmmENTS

Part B and GF 2,244 sq ft(1,275 sq ft G969 sq ft B)

Subway Realty Limited 15 yearsExpiring 16th Feb 2020

£35,000 Rent Review 17th Feb 2015 Notice Served, Sublet to a franchisee

Part B and GF 1,350 sq ft(826 sq ft G526 sq ft B)

I Ozcan and K Guclu 10 years expiring 10th July 2015

£15,500

1st Floor 2,847 sq ft Pearson Professional Assessments Limited

5 years expiring 31st Sept 2019

£40,000 Tenants break 1st Oct 2017

2nd Floor 2,847 sq ft Randstad CPE Limited 10 years expiring 26th Jan 2020

£43,110 Tenant has 3 months’ rent free from 24th March 2015, vendor will top up.

3rd Floor 2,847 sq ft Murgitroyd and Company Limited

10 years expiring 7th April 2021

£46,000 Rent £44,000pa to April 2015. Rent review and Tenants break 8 April 2016

4th Floor 2,847 sq ft Simpson and Marwick Solicitors LLP

10 years Expiring 26th March 2022

£34,500 Rent review and tenants break on 1st April 2017. Service charge capped –cap increases annually with RPI

5th and 6th Floor

4,588 sq ft Frank Recruitment Group Limited with Nigel Frank International Limited as Guarentor

6 years Expiring 5th June 2020

£54,000 Rent review and tenants break 5 June 2017. If break not exercised tenant benefits from an extra 3 months rent free.

TOTALS 19,570 sq ft £268,110 pa.

mARKET CONDITIONSThere is a dwindling supply of office space the heart of Newcastle. In 2014, just under 800,000 sq ft of office space was let across the Newcastle central and wider north east market in 158 transactions. The diminishing availability of available office space is likely to drive rental growth, see tenants incentives reduce and lease lengths and terms improve.

Collingwood House specifically is in an area clustered by Recruitment Agencies and Solicitors. We have noticed a strong and improving demand generally and also specifically from this sector.

EPC’S Available on request

TENANTS

VAT The property has been elected for VAT and therefore we would expect the investment will be treated as a transfer of a going concern (TOGC )

PRICINGOffers in excess of £2.95m (Two million nine hundred and fifty thousand pounds) which shows a net initial yield of 8.6% after allowing for purchasers costs of 5.8%.

Misrepresentation act This property is offered subject to contract, availability and confirmation of details. These particulars do not form any contract and, whilst believed to be correct, parties are recommended to satisfy themselves as to their accuracy. The vendors, lessors or reesdenton, or any person in their employment, cannot make or give any representation or warranty whatsoever in relation to this property. Unless otherwise stated, all prices and rentals quoted are exclusive of any Value Added Tax to which they maybe subject. February 2015

TENANT COmPANY REGISTRATION NUmbER

CREDITSAFE CREDIT RATING

ACTIVITIES

Subway Realty Limited www.subway.co.uk

4174473 76 Very Low Risk Lease/ sublease arrangements with landlords and franchisees who operate Subway sandwich shops

I Ozcan and K Guclu Private individuals Café and hot food takeaway

Pearson Professional Assessments Limitedwww.pearson.com

049043251 87A Very Low Risk The provision of computer based testing services

Randstad CPE Limitedwww.randstad.co.uk

01275025 90A Very Low Risk Second largest HR services provider in the world

murgitroyd and Company Limitedwww.murgitroyd.co.uk

SC144082 76A Very Low Risk Global Patent and Trade Mark Attorneys.

Simpson and marwick Solicitors LLPwww.simpmarllp.com

OC365821 79A Very Low Risk One of the UK’s premier litigation and dispute management firms with offices in Newcastle, Edinburgh and Leeds.

Frank Recruitment Group Limited

Nigel Frank International Limitedwww.nigelfrank.com

08473608

05985779

67B –Low risk

67B –Low risk

The global leader in Microsoft Recruitment with offices all over the world.

Fergus Laird BSc FRICS

Mobile: 07768 063109 Office: 0191 211 1561Email: ferguslaird@naylors.co.uk

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