Quadrant East, 16 The Silverlink North, Cobalt Business Park, West Allotment, NE27 0BY

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Quadrant East, 16 The Silverlink North, Cobalt Business Park, West Allotment, NE27 0BY

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Agent's Details

Simon Beanland

T: 07885 459270

Jamie Sim

T: 07940 951 776

For Sale £30,250,000 Offers in excess of

LET TO NORTH TYNESIDE COUNCIL AS THEIR ADMINISTRATIVE HQ AND CIVIC CENTRE UNTIL 19 NOVEMBER 2042 WITH ATTRACTIVE ANNUAL FIXED UPLIFTS

Cobalt Business Park is the UK's largest office park, providing 1.3 million sq ft of Grade A office accommodation.

In a highly accessible location, in one of North East's largest commercial hubs, providing easy access to Newcastle City Centre, Tyne Tunnel and the wider North East region.

Numerous amenities including a new Travelodge hotel, Village Hotel and Leisure Club, retail parade, gym, day nursery and also the extensive retail and leisure offering at the nearby Silverlink Shopping Park.

Cobalt 16, Quadrant East is a modern 119,566 sq ft HQ office fully occupied by North Tyneside Council for use as their Civic and Administrative Centre serving North Tyneside.

The entire property is let under a Lease Plus Agreement, the total income being apportioned 68% to the base income and 32% to the Facilities Management Service provision, provided by Grosvenor Facilities Management Limited.

The total gross passing income is £3,218,495 per annum made up of, base rent of £2,047,044 per annum and a FM rent of £1,171,451 per annum. The base rent increases annually by 2.6% and the FM rent by reference to the increase in the RPIx index, uncapped.

The base rent increases to £2,100,267 per annum from 1 April 2024. The vendor will top up the rent to this level.

The FM contract produces a significant profit. More details are provided later in this document and within the vendors data site.

The video tour was taken without staff being present at the tenant's request.

Offers are invited in excess of £30,250,000 (Thirty Million Two Hundred and Fifty Thousand Pounds) for our client's long leasehold interest. A purchase at this level reflects on the topped up base rent, a Net Initial Yield of 6.5 % after deduction of standard purchaser's costs of 6.78%. There is a significantly higher running yield, when the estimated profit from the FM agreement is taken into account.