Freehold Leisure Investment; Restaurant, Bar & Childrens Soft Play Centre

INVESTMENT SUMMARY

• A detached freehold investment property comprising three units currently operating as restaurants, a café lounge, and a children’s soft play centre.

• Situated in Winlaton Mill, fronting the A694, approximately 6 miles west of Newcastle city centre.

• Total Net Internal Area of 9,106.34 sq ft (846 sq m).

• Fully let across three new leases.

• Passing rent of £88,000 per annum, increasing to £90,500 pa from 2nd March 2027 (topped up on completion).

• The property is not elected for tax, meaning no VAT is payable on the purchase price.

We are instructed to seek offers in excess of £900,000 reflecting a net initial yield of 9.52% based on purchaser’s costs of 5.63%, reflecting a very low capital value of only £98.83 psf.

LOCATION

Winlaton Mill is an attractive village in Tyne and Wear, North East England mid-way between Gateshead to the northeast and Rowlands Gill to the south west. The village is on the A694 which joins the A1 at Swalwell and is close to the River Derwent.

Winlaton Mill is located approximately 6miles to the west of Newcastle city centre. The subject property is situated to the east of Winlaton Mill fronting the A694 and is situated immediately next to a petrol filling station and car valeting centre.

DESCRIPTION

The property is a detached building with ample car parking which has been split to provide three distinctive parts let as restaurants, a café lounge and children’s activity centre.

TENANCY INFORMATION

Unit 1 is let to private individuals on a 10 year lease ending 2 March 2027 at a rent of £25,000 per annum. The tenant has agreed a reversionary 7 year lease with 3 year rent review at £27,500 per annum, therefore expiring in March 2034.

Unit 2 is let to Pineapple and Bears Ltd on a new 7 year term from 1st May 2026 at £38,000 per annum, therefore expiring on 30th April 2033.

Unit 3 is let to two private individuals at a rent of £25,000 per annum on a new 7 year lease with 3 year rent review.

The total passing rent is therefore £88,000 per annum, which will increase to £90,500 from 2nd March 2027. The vendor will “top up” the rent to £90,500 upon completion, by way of a reduction to the purchase price.

TENURE

The property is held freehold with title number: TY295561

VAT

We understand the property is not elected to tax.

ENERGY PERFORMANCE CERTIFICATE

Unit 1 - B Unit 2 - B Unit 3 - B

PROPOSAL

We are instructed to seek offers in excess of £900,000 reflecting a net initial yield of 9.52% based on purchaser’s costs of 5.63%, reflecting a very low capital value of only £98.83 psf.