Property for sale

Property description

SITUATION

Quay West Business Village is accessed off the A19 and is located at the junction of Crown Road and West Quay Road on the Sunderland Enterprise Park.

There are excellent transport links with A19 access via the A1231 Wessington Way to the west. The site is in a prominent position overlooking the river and Sunderland City Centre is less than 1 mile to the east.

Surrounding occupiers on Sunderland Enterprise Park include Lloyds TSB, Barclays, Berghaus, Sunderland NHS Headquarters and Fusion.

DESCRIPTION

The subject property comprises a modern 2 storey office building with dedicated car parking space. There is central heating throughout with all mains services included. Security alarm and fire alarm systems secure the property.

INCOME

The property is currently let to AS Systems UK Limited on a 10 year lease from 22^nd October 2010. The passing rent is £105,690 per annum and rent reviews are due on the 3^rd and 6^th anniversary of the lease.

COVENANT STRENGTH

The tenant, AS System UK Limited, for the year ending 31^st December 2011 reported a turnover of £82,382,000, pre tax profits of £6,902,000 and shareholders funds of £9,812,000. The company reported a profit increase of £1,583,000 in 2011 and has seen its net worth fluctuate from £5,772,000 in 2009 to £11,050,000 in 2010 decreasing by 12.5% to £9,733,000 in 2011. It was also reported that the end of year cash at 31^st December 2011 was £1,259,000 which reflected a deficit of -£1,224,000.

In light of recent profits, it is our view that this company is well able to meet its obligations and should be considered to be a very good credit risk. Remember any company’s status and financial strength can change. You should therefore monitor all of your customers. (Experian Credit Report, 2013)

ACCOMMODATION

Ground Floor

Office                      154.81m2 (1,666 sq ft)

Office                      153.40m2 (1,666 sq ft)

Internal Storage           2.62m2      (28 sq ft)

First Floor

Office                      163.93m2 (1,764 sq ft)

Office                      163.93m2 (1,764 sq ft)

Second Floor

Office                      169.16m2 (1,821 sq ft)

Office                      169.16m2 (1,821 sq ft)

Total                        977.01m2 (10,516 sq ft)

TENURE

We understand the property to be freehold, free from any onerous encumbrances and restrictions.  The property is to be sold subject to and with the benefit of the existing leases in place. 

RATING ASSESSMENT

We understand that the rating assessment on the premises as at 1 April 2010 is as follows, although we would advise that some of the assessments may have been the subject of appeals and any interested party should confirm the current position with the Local Authority. 

Description              RV           UBR

Office & Premises   £89,000   45.8p

LEGAL COSTS

The ingoing tenant is to be responsible for our clients reasonable legal costs involved in the transaction.

VAT

All rents, premiums and purchase prices quoted herein are exclusive of VAT.  All offers are to be made to Bradley Hall upon this basis, and where silent, offers will be deemed net of VAT.

VIEWING

For general enquiries and viewing arrangements please contact sole agents Bradley Hall Chartered Surveyors on 0191 383 9999.

AGENTS NOTES

You may search our company website www.bradleyhall.co.uk for details of all our current instructions.

In accordance with the Code of Leasing Business Premises: England and Wales the landlords are willing to consider alternative lease terms to those set out above but please bear in mind that variations may affect the level of rent proposed.

A copy of the Code of Leasing Business Premises: England and Wales can be obtained at www.leasingbusinesspremises.co.uk or obtained from the Royal Institution of Chartered Surveyors, Telephone 0207 334 3806.

Property Features :

• Office Investment For Sale
• Let to AS System UK until October 2020
• Passing Rent £105,690
• Rent Reviews in 2013 and 2016
• 7 Years Unexpired With No Breaks