Cobalt-Newcastle.Pdf
North Tyneside Council Cobalt 14, Quicksilver Way, North Tyneside NE27 0QQ Modern Government Let Office Investment Long Unexpired Lease Term with Annual Rent Reviews • Located on Cobalt Business Park, in Newcastle, with easy access to the A1 dual carriageway via the A19 dual carriageway. • Built in February 2007, the property comprises a modern, well specified office building totalling approximately 46,136 sq ft (4,286 sq m). • The property is offered on a long leasehold basis with an unexpired term of 108 years at an annual peppercorn rent. • Entirely let to North Tyneside Council on a 23 year term from 1st July 2009 (with currently around 19 years unexpired) . • The property is let on a Lease Plus Agreement with a total current income of £878,981 per annum. • Under the Lease Plus Agreement the total initial rent payable is apportioned 68% to the base occupational rental income and 32% for the Facilities Management Service provision. • The 68% base Occupational Income is subject to fixed annual increases of 2.6% per annum and currently amounts to £586,914 per annum (£12.72 per sq ft). The 32% FM element is subject to annual increases in line with the movement in RPIx. • In addition to the Income received from North Tyneside Council, the landlord also benefits from a Rental Top Up which is held in an escrow account. The total value of the cash pot amounts to approximately £790,000 and is released on a monthly basis. For 2013 the annual top up amounts to £150,869. • By virtue of a renegotiated FM Service contract, the landlord also y benefits from a saving by virtue of receiving a higher annual FM r payment from North Tyneside Council when compared with the actual cost of the FM service provided.
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