Majority of income secured by DS Smith Corrugated Packaging Limited
Industrial estate comprising approximately 425,086 sq ft of accommodation
Established industrial location close to Junction 61 A1(M)
Asset management and development potential (subject to consents)
Total approximate site area of 17.735 acres (7.177 hectares)
Lot 26
Auction 18th October 2018
Rent £161,362 per Annum Exclusive
Status Withdrawn Prior
Price
Sector Industrial, Warehouse
Auction Venue The Radisson Blu Portman Hotel 22 Portman Square London W1H 7BG
On Behalf of a Major Investment Manager
Property Information
Location
Miles
6 miles south of Durham
20 miles north-west of Middlesbrough
21 miles south of Newcastle upon Tyne
Roads
A688, A167, A1(M) (Junction 61)
Air
Durham Tees Valley International Airport
Situation
Spennymoor is a popular town in County Durham, just 6 miles south of Durham city centre. The property is located approximately 2.5 miles from the A1(M), just off the A688. The site is 1 mile south of Spennymoor town centre with the surrounding area being traditionally predominantly industrial. The adjacent site has been acquired for residential development and has outline planning for 425 dwellings. Barratt Homes is in the process of building 366 new homes on a nearby site, known as Merrington Park. Nearby industrial occupiers include Thorn Lighting, Jewson and J Mitchinson.
Tenure
Freehold.
Location
Miles
6 miles south of Durham
20 miles north-west of Middlesbrough
21 miles south of Newcastle upon Tyne
Roads
A688, A167, A1(M) (Junction 61)
Air
Durham Tees Valley International Airport
Situation
Spennymoor is a popular town in County Durham, just 6 miles south of Durham city centre. The property is located approximately 2.5 miles from the A1(M), just off the A688. The site is 1 mile south of Spennymoor town centre with the surrounding area being traditionally predominantly industrial. The adjacent site has been acquired for residential development and has outline planning for 425 dwellings. Barratt Homes is in the process of building 366 new homes on a nearby site, known as Merrington Park. Nearby industrial occupiers include Thorn Lighting, Jewson and J Mitchinson.
Tenure
Freehold.
Description
The property, a multi-let industrial estate, comprises some 39,491.74 sq m (425,086 sq ft) of accommodation, which is capable of subdivision into 13 separate units. The property has a total approximate site area of 17.735 acres (7.177 hectares).
VAT
VAT is applicable to this lot.
EPC
The EPC will be available to view online in the solicitor’s legal pack.
Description
The property, a multi-let industrial estate, comprises some 39,491.74 sq m (425,086 sq ft) of accommodation, which is capable of subdivision into 13 separate units. The property has a total approximate site area of 17.735 acres (7.177 hectares).
VAT
VAT is applicable to this lot.
EPC
The EPC will be available to view online in the solicitor’s legal pack.
Tenancy & Accommodation
Unit
Floor
Use
Floor Areas (Approx)
Tenant
Term
Rent p.a.x.
Reviews/ (Reversion)
Units 1 & 2
Ground
Industrial
6,637.08 sq m
(71,441 sq ft)
D.S SMITH CORRUGATED PACKAGING LIMITED (1) (2)
10 years from 09/03/2014
£124,747
09/03/2019 (08/03/2024)
P Shop
Ground
Industrial
863.16 sq m
(9,291 sq ft)
D.S SMITH CORRUGATED PACKAGING LIMITED (1) (2)
A term of years from 16/12/2016
£26,202
09/03/2019 (08/03/2024)
Units 3 & 4
Ground
Industrial
10,450.66 sq m
(112,490 sq ft)
VACANT POSSESSION
Units 5 & 6
Ground
Industrial
6,759.90 sq m
(72,763 sq ft)
VACANT POSSESSION
Unit 7
Ground
Industrial
856.47 sq m
(9,219 sq ft)
PS MANAGED SOLUTIONS LIMITED (3)
10 years from 31/03/2017
£6,913 rising to £13,827 on 1/04/2019 & £18,500 on 01/04/2020
30/03/2022 (31/03/2027)
Units 8 & 9
Ground
Industrial
4,182.95 sq m
(45,025 sq ft)
VACANT POSSESSION (3)
Unit 10
Ground
Industrial
9,426.03 sq m
(101,461 sq ft)
PART VACANT (4)
Old Boiler House
Ground
Industrial
150.50 sq m
(1,620 sq ft)
VACANT POSSESSION
Boiler House
Ground
Industrial
164.99 sq m
(1,776 sq ft)
DODDS SITE SERVICES LIMITED
2 years from 28/09/2016
£3,500
Holding Over
Total
39,491.74 sq m
425,086 sq ft
£161,362 rising to £172,949 in 2020
(1) For the year ending 30 April 2017, DS Smith Corrugated Packaging Limited reported a turnover of £95,559,000, pre-tax profits of £10,782,000 and a total net worth of £52,336,000 (Source: Experian Group 14/09/2018). The tenant is currently benefiting from a rent free period on both units 1 & 2 and P Shop due to expire on the 24/12/2018, which was granted in exchange for removing the 2019 break option. (2) There have been discussions with DS Smith Corrugated Packaging Limited to take a lease of units 5 & 6 in addition to their existing space on the estate. (3) Units 7,8 and 9 benefit from a 20 year roofing warranty from Renolit Cramlington Limited expiring 26/01/2037 - further information can be found in the legal pack. (4) PS Managed Solutions occupy 5,000 sq ft by way of a licence and pay service charge on that element and bear full rates liability for unit 10.
Contacts
Seller's Solicitors
Reed Smith LLP Broadgate Tower, 20 Primrose Street London EC2A 2RS
