Spectrum 4, Spectrum Business Park, Seaham
Description
Grade A Headquarters Investment
Let to the strong covenant of Believe Housing Limited on a lease expiring October 2034
Let to Believe Housing Ltd, a strong covenant, and social housing provider to Durham County Council. It manages, maintains, administers and develops, what was until 2015, Durham County Council’s social housing portfolio, comprising approximately 18,500 homes located across the whole of County Durham.
A detached 3 storey Grade A office completed in 2008, extending to 3,253 sq m (35,012 sq ft) with 129 car parking spaces.
Located on a site extending to 0.856 hectares (2.117 acres).
Situated in an area benefitting from significant commercial development and well placed for retail and leisure facilities.
15 year full repairing and insuring lease commencing from the 25th October 2019 without break.
The tenant has invested £1.5 million in extensively fitting-out the property.
EPC - B.
Personal concessionary passing rent by way of incentive of £208,321 per annum (£5.95 per sq ft) which changes throughout the term, finishing in years 13-18 £243,373 per annum (£6.95 per sq ft). A higher rent is reserved under the lease which if assigned increases the passing rent to £418,393 per annum (£11.95 per sq ft). Recent transactional evidence demonstrates rents achieved in excess of £7.50 psf and indicating that the subject property is reversionary.
We are instructed to invite offers of £2,600,000 (Two Million Six Hundred Thousand Pounds) for our client’s freehold interest. The yield profile net of purchaser’s costs at 6.40% is:
2025 to 2027 - 7.53%*
2028 to 2029 - 8.16%
2030 - 8.48%
2031 - 2034 - 8.80%
*Landlord will top up the rent in years 1 to 3 to £208,321 per annum.
On a capital value basis, this figure reflects a very low rate of £74 per sq ft.
Let to the strong covenant of Believe Housing Limited on a lease expiring October 2034
Let to Believe Housing Ltd, a strong covenant, and social housing provider to Durham County Council. It manages, maintains, administers and develops, what was until 2015, Durham County Council’s social housing portfolio, comprising approximately 18,500 homes located across the whole of County Durham.
A detached 3 storey Grade A office completed in 2008, extending to 3,253 sq m (35,012 sq ft) with 129 car parking spaces.
Located on a site extending to 0.856 hectares (2.117 acres).
Situated in an area benefitting from significant commercial development and well placed for retail and leisure facilities.
15 year full repairing and insuring lease commencing from the 25th October 2019 without break.
The tenant has invested £1.5 million in extensively fitting-out the property.
EPC - B.
Personal concessionary passing rent by way of incentive of £208,321 per annum (£5.95 per sq ft) which changes throughout the term, finishing in years 13-18 £243,373 per annum (£6.95 per sq ft). A higher rent is reserved under the lease which if assigned increases the passing rent to £418,393 per annum (£11.95 per sq ft). Recent transactional evidence demonstrates rents achieved in excess of £7.50 psf and indicating that the subject property is reversionary.
We are instructed to invite offers of £2,600,000 (Two Million Six Hundred Thousand Pounds) for our client’s freehold interest. The yield profile net of purchaser’s costs at 6.40% is:
2025 to 2027 - 7.53%*
2028 to 2029 - 8.16%
2030 - 8.48%
2031 - 2034 - 8.80%
*Landlord will top up the rent in years 1 to 3 to £208,321 per annum.
On a capital value basis, this figure reflects a very low rate of £74 per sq ft.
BUILDING HIGHLIGHTS
Let to Believe Housing Ltd.
EPC - B.
A detached 3 storey Grade A office completed in 2008.
Located on a site extending to 0.856 hectares (2.117 acres).
