Purpose Built Tesco Anchored Neighbourhood Retail Parade

INVESTMENT SUMMARY

• Westoe is a picturesque, seaside location to the south east of South Shields

  
  

• An attractive purpose-built convenience retail parade comprising nine units

  
  

• 33% of the income is secured to Tesco Stores Ltd, who recently extended their lease term by a further 15 years, expiring July 2041

  
  

• 41% of income is from undoubted covenants Tesco Stores Limited and Church of England’s Childrens Society

  
  

• The property shows a strong WAULT of 14.36 y ears to expiry and 11.54 years to break

  
  

• 36% of the income benefits from index-linked reviews

  
  

• South Shields is benefitting from a number of ongoing major developments, including a £95m town centre regeneration project

  
  

• EPCs rated B

  
  

• Freehold

PROPOSAL

We are instructed to seek offers in excess of £2,050,000 (Two Million and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 9.03%, assuming standard purchaser costs of 6.29%

LOCATION

Westoe is highly regarded as a desirable, seaside location, close to South Shields and is situated approximately 7 miles (11.50km) east of Newcastle upon Tyne, 6 miles (9.65km) north of Sunderland and 7.50 miles (12.40km) north east of Washington.

Westoe benefits from excellent regional road connections, with the A19 and A194(M) providing direct access to the A1(M), the key north–south route through eastern England. This allows travel to major cities, including Newcastle upon Tyne (20 minutes via the A1058), Leeds (1 hour 45 minutes) and Edinburgh (2 hours 30 minutes).

Westoe benefits from two nearby Metro Stations; South Shields Metro Station is located in the town centre and lies approximately 0.5 miles (0.8 km) north west of the subject property. Chichester Metro Station is also located approximately 0.5 miles (0.8km)to the west. The Tyne and Wear Metro provides direct services to Newcastle Central Station in approximately 25 minutes, Sunderland in approximately 30 minutes, and onward connections to the national rail network.

Newcastle International Airport is located approximately 15 miles (24 km) north-west of South Shields, providing frequent domestic and international flights across Europe and beyond. Durham Tees Valley Airport lies approximately 38 miles (61 km) south and can be reached in under an hour by car.

DEMOGRAPHICS

Westoe has a local population of approximately 8,000 people. South Shields forms part of the Borough of South Tyneside and has a residential population of approximately 75,000 and a wider borough catchment of 147,800 (ONS).

South Shields is benefitting from a number of significant investment and regeneration projects throughout the town.

£95 Million Town Centre Regeneration

South Shields town centre is undergoing a major regeneration project, which includes the relocation of South Tyneside College and South Shields Marine School to a new 15,000 sqm campus in the town centre. The project is a partnership between Tyne Coast College and South Tyneside Council, and is funded by Tyne Coast College, the North East Combined Authority, Department for Education and UK Government.

£20 Million Riverside Transformation

The South Shields Riverside Transformation Package, backed by a £20 million Levelling Up Fund investment, focuses on enhancing the riverside area. Plans include the development of the Holborn Riverside site, which will feature 300 new homes and 200,000 sq ft of Grade A office space, aiming to create a vibrant mixed-use community.

The Holborn Riverside development is transforming former industrial land into a desirable residential and commercial area, featuring 300 new homes and approximately 200,000 sq ft of Grade A office space, aiming to strengthen the connection between the riverside and the town centre.

£9 Million King Street Revitalisation

Over £9 million is being invested to revitalize King Street and the market area, focusing on improving pedestrian pathways, increasing greenery, and enhancing safety measures

SITUATION

The property is prominently positioned within the heart of Westoe Village, a thriving residential community in South Shields developed by Taylor Wimpey. Benefiting from its central location within the village, the property serves as the principal convenience retail offering for the surrounding housing and community facilities. The property is close to other local amenities such as Westoe Crown Primary School, attractive parks, and the popular seafront.

DESCRIPTION

The property comprises a purpose built retail parade comprising nine units set across two separate blocks, with the first and second floors comprising residential accommodation. The property is surrounded by a number of public parking spaces, primarily located in front of the property, with residential and retail tenant parking located to the rear.

TENURE

The property is held freehold under title number: TY534177

INVESTMENT RATIONALE

• Low passing rent of only £14.81 psf compared with recent lettings in excess of £16.00 psf

• 33% of the income is secured to Tesco Stores Limited

• Tesco Stores Limited have an unbroken lease to 2039 providing approximataly 13.2 years unbroken

• WAULT of 14.36 years to expiry and 11.54 years to break

• 41% of the income is from undoubted covenants Tesco Stores Limited and The Children’s Society

• 36% of the income includes inflation linked reviews