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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. a • Offers are invited in excess of £10,730,000 (Ten Million, Seven Hundred and Thirty Thousand Pounds) subject to m contract and exclusive of VAT. • Reflects an attractive net initial yield of 6.5% after allowing for m purchaser’s acquisition costs of 5.8% when calculated against the occupational rental income of £737,783 (Occupational Income u plus the Rental Top Up). S t n e m t s e v n I Location A696 THE PROPERTY The property is located on Cobalt Business Park, Newcastle which is the regional capital of the North East and is located approximately 145 km (91 miles) north of Leeds, 190 km (119 miles) south-east of Edinburgh, 224 km (140 miles) north-east of A1 NORTH SHIELDS Manchester and 456 km (285 miles) north of London. A19 A69 A186 SOUTH A19 NEWCASTLE SHIELDS COBALT 14 UPON TYNE A194(M) A1 SUNDERLAND A68 A592 A191 A186 A1(M ) COLBALT BUSINESS PARK NEW YORK INDUSTRIAL PARK A19 A1058 ORION BUSINESS A1058 PARK By Road By Rail s • Cobalt Business Park benefits from excellent • Cobalt is on eight local bus routes and has a • Newcastle is on the East Coast Main Line, road links to the major urban areas in the dedicated fleet of ‘Cobalt Clipper 309’ buses with a fastest journey time to London Kings n North East via the A19 which passes operating from Newcastle Haymarket Cross of approximately 2 hours 50 minutes adjacent to the south-west boundary of Interchange directly to Cobalt and the and to Edinburgh in 1 hour 40 minutes. o i the Park. North East coast to the east, running • The rail network also provides a direct t every half hour in each direction. • The A19, via the A194, provides access to route to Manchester with a fastest journey a the A1(M) and the national motorway • The R19 service runs directly through time of approximately 2 hours 35 minutes. c network to the south of Newcastle. Cobalt and connects with every peak time By Air i Metro at Northumberland Park Interchange. • Newcastle city centre is approximately Only a 3 minute journey from Cobalt, the • Cobalt Business Park is located only 18 km n 10 km (6 miles) to the south-west of the 9/A runs from South Tyneside at Percy Main (11 miles) from Newcastle International Park via the A1058 Coast Road. u and meets every ferry at the North Shields Airport, which provides both domestic and By Bus terminal. international flights to destinations throughout Europe and to selected m • Cobalt Business Park is set in the heart of • With a service running every 15 minutes, destinations in North America, North Tyneside and is currently served by the ‘Stephenson Link’ is a rapid transport The Caribbean, Africa and the Middle East. over 29 buses an hour providing direct links link connecting the Park to the north and m to Whitley Bay, Blyth, Newcastle South south loops of the Tyne & Wear Rail o Gosforth, Killingworth, Cramlington, Network, and providing direct access to Wallsend and key areas in Northumberland. both Newcastle International Airport and Newcastle city centre. C Cobalt Business Park is considered to be one of A wide offering of retail, restaurant and leisure facilities are the foremost Business Parks in the UK in terms of size and located in proximity. Within a short walk from Cobalt 14 is a quality. When fully developed at 3 million sq ft, it will be the Tesco Express and Greggs. UK’s largest office park on 143 acres of land. At the nearby Silverlink Retail & Leisure Parks existing The Park benefits from having an excellent location with good tenants include Next, Marks & Spencer, Outfit, Currys/ transport links and numerous on-site facilities. The high PC World and Boots amongst a number of others. Other specification offices provide head quarter style accommodation nearby occupiers include an Odeon Cinema, Pizza Hut, let to an impressive range of tenants that include the following: Frankie & Benny’s, McDonald’s and a complex of car showrooms (including Porsche, Audi, Volkswagen, Toyota and • Accenture • CBX BMW). • Formica • Balfour Beatty The property is prominently located adjacent to The • G4S • Hewlett Packard Silverlink North and lies at the north western corner of the • Everything Everywhere • Santander Park on the site known as Plot 14. • P&G • NHS Trust • Newcastle Building Society • Job Centre Plus More information on Cobalt Business Park is available at • Village Hotel • North Tyneside Council www.cobaltbusinesspark.com • Just Learning Nursery • Ramsay Health Care • Fujitsu • Equinox Demographics • LS Trillium • Chisholm • DNV Newcastle has a resident population of approximately 190,000 and around 1,400,000 live within 12 miles of the city The Park also has a unique combination of on-site facilities: centre. Cobalt Business Park is highly accessible to a large • 39 acre countryside park which was designated as a local catchment population including the conurbations of North nature reserve in 2005. Shields, South Shields, Tynemouth and Jarrow. The working • The Just Learning Children’s Day Nursery has secure play population, within the following drive times, are as follows: areas (with CCTV) and 25 staff on site providing childcare for up to 110 children aged between 2 months to 5 years. Distance (Minutes) Population • 157 bedroom Newcastle Village Leisure Hotel incorporating 10 93,159 4 star facilities, conference banqueting and business meeting 20 466,334 facilities and leisure facilities such as a 25 metre pool, sauna, 30 1,077,907 fitness studio and spa. 40 1,451,751 Source: CACI Cobalt Business Park Site Area The property is situated on a site of approximately 3.984 acres (1.6122 hectares). North Tyneside Council Ordnance Survey Map New Office & Retail Development let to Tesco & Greggs Country Park This plan is published for convenience of identification. Any boundaries shown are indicative only and should be checked against the Title Deeds. The plan is based upon Ordnance Survey Map with the permission of the Controller of H M Stationery © Crown Copyright. Subject Property Floor Areas The property has been measured on a Net Internal Area basis in accordance with the RICS Code of Measuring Practice (6th Edition) and from this we calculate the approximate areas to be as follows: Existing Building Description Sq ft Sq m Ground Floor 11,324 1,052 Level 1 11,604 1,078 Level 2 11,604 1,078 Level 3 11,604 1,078 Total NIA 46,136 4,286 Description The property comprises a modern 4 storey office building which was completed in February 2007. The building is of steel framed construction and features a glass façade on 2 elevations of the property. The building provides large open floor plates over 4 floors with a double height feature reception area. The accommodation has been fitted out to a high specification to include: • Air conditioning • Full accessed raised floor with a clear void of 150 mm • Suspended ceilings with LG7 lighting • Double height feature reception • Two 13-person passenger lifts • 3 metres clear floor to ceiling height Car parking is provided adjacent to the building and provides 201 spaces which equates to a ratio of 1:229 sq ft (1:21.27 sq m). Tenure The property is held by the vendor on a long leasehold basis for 125 years (less 6 days) from 29th March 1996 expiring 22nd March 2121 with approximately 108 years unexpired. The purchaser will however be granted a new sub-underlease for the remainder of the 108 year term, less 1 year (expiring 22nd March 2020) at an annual peppercorn rent. Tenancy Based on the formula the rental profile is as follows: The property is let to North Tyneside Council on a A B C D E F G full repairing and insuring lease from 1st July 2009 and expiring 20th November 2032. TOTAL PAYMENTS Total Outgoings RECEIVED payable by LL - The initial rent payable is £778,889.70 per annum.