About this property
The property is situated in the Hendon area of Sunderland, approximately ½ mile east of the City centre.
The property forms part of a small industrial estate fronting on to the A1018, south radial route which provides good access to the City centre and port of Sunderland. The A19 is approximately 4 miles to the south.
The subject property comprises a detached light industrial unit of steel portal frame construction with brickwork walls and corrugated asbestos clad roof which has recently been overclad with profile metal sheeting.
Internally, the unit provides an open production space with loading doors to the yard. To the southern end of the unit is a two-storey integral office. To the northern end of the unit is an attached single storey office of brick construction under a mineral felt covered flat roof.
The property has been recently upgraded with improvements made to the offices to include LED lighting, gas fired central heating to radiators and dado trunking. The production space has also been upgraded with new roof lights and LED lighting.
There are enclosed yards to both the east and west elevations of the building. The total site extends to approximately 0.34 hectares (0.85 acres) or thereabouts.
We have measured the whole of the property as providing the following gross internal areas:
Warehouse 1,005.20 sq m (10,820 sq ft)
Ground floor office 81.49 sq m (877 sq ft)
First floor office 81.49 sq m (877 sq ft)
Single storey office 110.91 sq m (1,194 sq ft)
TOTAL 1,279.09 SQ M (13,768 SQ FT)
The property is let by way of a lease for a term of 20 years from 24 March 2006 to 23 March 2026 on effectively a fully repairing and insuring basis to Velocity UK Limited at a passing rent of £42,535 which was set in 2018.
There is provision in the lease for the rent to be increased annually. A copy of the lease is available on request.
The passing rent equates to a rate of £3.09 per sq ft per annum based on our opinion of the gross internal area of the property. We are of the opinion that this rent is low and that there are good prospects for rental growth.
The property is entered into the Rating List as follows:
Description: Workshop & Premises
Rateable value: £21,250
All figures quoted above are exclusive of VAT where chargeable.
Each party are to bear their own legal costs.
The property is let to Velocity UK Limited. As at 31 December 2020 Velocity UK Limited reported net assets of £1,068,760.
The ultimate parent company is Reece Group Limited which reported a pre-tax profit in 2020 of £13.2m.
The freehold interest in the property is available subject to the tenancy at offers over £520,000 representing a gross initial yield 8.18%.
The property has been elected for VAT. VAT will, therefore, be payable on the purchase price. It is anticipated, however, that the sale will be treated as a Transfer of a Going Concern (TOGC).
Sunderland City Council, Civic Centre, Burdon Road, Sunderland, SR2 7DN, Telephone (0191) 5205555.
ENERGY PERFORMANCE CERTIFICATE
The property has an EPC Rating of C-64. A copy of this certificate and recommendation report are available upon request.
Strictly by appointment with sole agents, YoungsRPS
Stamp Duty Due
Based on a sale price of £520,000 the total amount of stamp duty payable will be:
Last updated: The calculator has been updated to reflect changes in stamp duty following the Mini Budget on 23rd September 2022.
* This value is based on the standard rate and not applicable to first-time buyers or buy-to-let / second home buyers.