WatersideHouse.

FOR SALE Enterprise Park, Sunderland, SR5 2TZ

Securely Let Government Office Investment Investment Summary

• Well located business park in close proximity to the A19 (via the A1231) We have been instructed to seek and Sunderland city centre offers in excess of £2,950,000 • Established business location with occupiers including Berghaus, Balfour Beatty, TSB, NHS Primary Trust, Honeywell and BGL Group Ltd (Two Million Nine Hundred and • Area set to benefit from further improvements with the completion of Fifty Thousand Pounds) the New Wear Bridge (June 2018) which reflects a net initial yield of • Three storey office building extending to a net internal area of 36,718 ft² 10.67% after the deduction of • Freehold purchasers’ costs at 6.44%. • Let to, and fully occupied by, The Secretary of State for Communities and Local Government on a renewed 5 year lease expiring 02 February 2022, subject to a break option on 31 March 2020 A purchase at this level equates to a • Rack rented at £335,000 per annum, equating to £9.12 /ft² 2 • Excellent on site car parking ratio of 1:211 ft2 (174 vehicles) low capital value of £80.34 /ft .

Sunderland Enterprise Park, Sunderland, SR5 2TZ 2 (Approx 12 Miles North East) Location A1 A194 Scotland

Glasgow A1231 River Wear Edinburgh SUNDERLAND

Newcastle SUNDERLAND Carlisle Washington A1(M)

Leeds

Manchester A690 Liverpool Nottingham Birmingham Wales England Middlesbrough New Cardiff London (Approx 25 Miles South) Bristol

A19 Bournmoor

Sunderland is one of the North East’s most important commercial centres, situated approximately 12 miles (19 kilometres) south east of Newcastle upon Tyne and Situation 25 miles (40 kilometres) north of Middlesbrough. Sunderland is the North East’s largest city, with a population of approximately 275,506 (2011 Census) and a catchment population of 420,268 (2011 Census). Sunderland Enterprise Park is situated on the north side of the River Wear and only 2 miles west of Sunderland City Centre. The A1231 lies immediately to the north of the business park providing links from The City enjoys excellent transport communications the city to the A19, 2 miles to the west. The Enterprise Park is made up of various office and industrial units linking to the main east coast arterial routes of the A19, lining the River Wear. 2 miles (3 kilometres) to the west, and the A1(M) at junction 65 and 62, 7 miles (11 kilometres) to the north The A1231 is considered the main arterial route to the city centre and provides links to the A19 and runs and 10 miles (16 kilometres) to the south respectively. into the A1(M) at Washington. Sunderland’s mainline railway station runs services to Durham and Newcastle with a fastest journey time to Between the A19 and city centre, the A1231 links to the Sunrise Enterprise Park, Sunderland Enterprise London Kings Cross of 3 hours 20 minutes. Park, Hylton Road Retail Park, new Sainsburys Superstore, Southwick Industrial Estate, Trimdon Street Retail Park and Low Southwick Industrial Estate. The Tyne & Wear Metro system was extended in 2002 to Sunderland and which has benefitted The new Wear Bridge crossing the River Wear is less than half a mile to the west of the subject property the City and Region as a whole. The Metro links the City and will provide further links over the River, especially between the Port of Sunderland and the city centre. to Newcastle Airport which is located approximately 22 The crossing is scheduled to be completed in June 2018. miles (35 kilometres) to the north west.

Sunderland Enterprise Park, Sunderland, SR5 2TZ 3 1. Sunderland City Centre 1 2. Queen Alexandra Bridge 2 4 3. Interflex 4. Southwick 3 Industrial Estate 5 6 5. Bristol Street Motors 6. Precision Printing 7 7. NE Business & Innovation Centre

8. Royal Mail

8 A1231

Sunderland Enterprise Park, Sunderland, SR5 2TZ For illustrative purposes only 24 Sunderland Regeneration

Sunderland is a city benefitting from an extensive regeneration program, with over £1bn of investment scheduled in the next 9 years Regional Economy to further support economic growth and create over 20,000 jobs. The City Council, in partnership with Carillion, has embarked on a programme of city centre improvements centred around the Vaux Sunderland’s main industries include light manufacturing, call centre / service sector and Brewery Development Site. The phased development of the site began the automotive industry with Nissan being of the region’s major employers, employing in December 2016 and is set to include a mixed use scheme approximately 12,000 people. incorporating office, residential and ancillary uses. Phase One will be in the centre of the development site and includes a speculative 60,000 ft2 Other significant employers in the area include Johnson Controls, TFW Systems and office building. Unipres Ltd. The new £118m Wear Crossing development began early 2016 and is set to complete in June 2018. This will directly benefit the Sunderland The city has a student population of 18,000 making it a thriving University city, holding Enterprise Park and A1231 links around the city. strong partnerships with major companies such as IBM, Intel, BT, Procter and Gamble and Glaxo Smith Kline. The university boasts leading facilities including a £12m flagship There are to be further improvements to Wessington Way (A1231) sports facility, 200 seat cinema and a new £8.5m science complex. between the New Wear Bridge and the A19 after the bridge has been completed. The Sunderland office market is dominated by out of town locations, namely Sunderland Enterprise Park and Doxford Business Park. Further future regeneration works include:

Over the last 20 years, Sunderland Enterprise Park has established itself as a leading • Development of the former Crowtree Leisure Site commercial location, with the likes of Berghaus having their international head office here • Funding for a £29m improvement to the Sunderland College and other national occupiers including; TSB, Honeywell and NHS Primary Trust all being campus and a further £8m on the college’s skills academy tenants. • Completion of the High Street West regeneration The construction of the new river crossing is likely to enhance local infrastructure and prominence of the business park. • Development of a hotel and retail scheme within Keel Square

Sunderland Enterprise Park, Sunderland, SR5 2TZ 25 A19 7 5 4 6 3

2

New Wear Bridge A1231 Completion planned 1 for June 2018

1. Royal Mail 5. Sunderland 2. Balfour Beatty Hylton Park 3. New Sainsbury’s 6. BGL Group Supermarket Limited 4. Premier Inn 7. Berghaus

Sunderland Enterprise Park, Sunderland, SR5 2TZ For illustrative purposes only 26 M2 Ft2 Accommodation Ground floor 1,135.99 12,228

The property has been measured in First floor 1,136.85 12,237 accordance with the RICS Code of Measuring Practice (6th edition). Second floor 1,138.38 12,253 We calculate the net internal areas to be: Total 3,411.22 36,718

Description

Waterside House is a three storey office building of steel frame construction with brick clad and glazed elevations under a pitched tiled roof.

The property has the following internal specification: • Suspended ceilings • Raised floors • Floor to ceiling height of 2.98m • Air Conditioning • WCs on all floors, including disabled WC • 2 x Passenger Lifts

The office space is generally open plan with a number of meeting rooms, training rooms and staff facilities throughout. There is also a ground floor reception area.

In addition to the office accommodation the building provides car parking for approximately 174 vehicles at a ratio of 1:211 ft². The rear car park is surrounded by a steel palisade fence and the entrance to the car park is secure with a barrier and intercom system.

Sunderland Enterprise Park, Sunderland, SR5 2TZ 27 Site

The property sits on a regular shaped site extending to approximately 0.725 ha (1.791 ac).

Tenure

Freehold. Tenancy

The property is fully let to The Secretary of State for Communities and Local Government on a 5 year lease from 03 February 2017, expiring on 02 February 2022 at a passing rent of £335,000 per annum.

The lease is drafted on full repairing and insuring terms and is subject to a break option on 31 March 2020.

Rack rented at £335,000 per annum, equating to £9.12 /ft2.

Sunderland Enterprise Park, Sunderland, SR5 2TZ 28 Covenant Information VAT

The building is in full occupation by The Secretary of State for Communities The property is registered for VAT and therefore VAT will be payable on the and Local Government and is in use as the HMRC Contact Centre with its purchase price. It is envisaged the sale will be dealt with by way of a TOGC. main function being a national tax office.

The Secretary of State is an undoubted UK Government covenant. EPC

The property has been assessed with a rating of C (69). Details can be provided on request. 29 CONTACT INFORMATION

For further information or to arrange an inspection, please contact any of the following:

Douglas Cranston MSc MRICS 0191 594 5023 07867 001 380 [email protected]

Adam Greenwood MRICS 0191 594 5000 07776 858 536 [email protected]

Jamie Wilson BSc (Hons) Proposal 0191 594 5002 07976 577 363 [email protected] We have been instructed to seek offers in excess of £2,950,000 Dickon Wood MRICS (Two Million Nine Hundred and Fifty Thousand Pounds) for our client’s 0191 594 5036 07966 023 924 freehold interest, subject to contract and exclusive of VAT. [email protected]

A purchase at this level reflects a net initial yield of 10.67% after allowing Knight Frank LLP 2 124 Quayside for purchasers’ costs of 6.44% and a capital value of £80.34 /ft . Newcastle upon Tyne , NE1 3BD

MISREPRESENTATION ACT: Knight Frank LLP give notice to anyone who may read these particulars as follows:-

1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. March 2017.

Sunderland Enterprise Park, Sunderland, SR5 2TZ 102