Available

Multi-Let Creative Workspace & Studio

Price:

£1,275,000

13,294 sq ft

Multi-Let Creative Workspace & Studio Investment Opportunity

Cloth Works & Business Works

Investment Summary

Opportunity to acquire an established, fully let multi-let workspace investment comprising two adjoining former industrial buildings.
Combined total of 47 units and storage stores, providing approximately 9,449 sq ft (890 sq m) net internal area, within a combined Gross Internal Area of approximately 13,294 sq ft (1,235 sq m).
Let entirely on flexible monthly rolling licence agreements to a diverse range of creative, music, wellness and office occupiers.
100% occupied.
Established waiting list of prospective occupiers, providing a ready-made pipeline of replacement income.
Combined current income of £155,989.14 per annum, exclusive of VAT.
Prominent position within an established industrial and business estate on the corner of the Coast Road (A1058) and Benfield Road, approximately 2.5 miles east of Newcastle city centre.
Masonry and steel frame construction, with both buildings arranged over a single ground floor.
On-site car parking, with approximately 14-16 spaces at Business Works and 8 spaces at Clothworks Business Centre.
Genuine active management opportunity with potential for further rental growth.

Proposal

Offers are invited in excess of £1,275,000 (One Million, Two Hundred and Seventy-Five Thousand Pounds), reflecting a net initial yield of 10% after landlord’s operational costs and assuming standard purchaser’s costs.

Location

The property is located on Industry Road, Heaton, within an established industrial and business estate situated on the corner of the Coast Road (A1058) and Benfield Road, to the east of Newcastle city centre.

Benfield Road provides direct access to the A193 and onward to Newcastle city centre, whilst the Coast Road (A1058) provides access west into the city centre and east towards Wallsend, North Shields, Tynemouth and the North East coast.

The A1058/A19 interchange at Silverlink lies approximately 3 miles to the north east, providing further access to the wider regional motorway network.

The property is approximately 2.5 miles from Newcastle city centre and 2 miles from Wallsend, with Walkergate Metro station located approximately 0.7 miles to the south, providing regular services across the Tyne & Wear Metro network.

Surrounding occupiers within the wider Industry Road estate include a range of trade counter, storage and industrial operators, reflecting the area’s long-established role as a popular industrial and business location serving the east of Newcastle.

Description

The property comprises two adjoining former industrial buildings, historically part of a wider factory complex, which have been converted and sub-divided to provide a range of small self-contained units let on flexible licence terms.

Both buildings are of brick and block construction with insulated steel sheeting, under a steel-framed profiled steel sheet pitched roof, and are arranged over a single ground floor. Internally, the buildings are subdivided predominantly by stud partitioning to form individual lockable units, with protected corridors providing access to the units, and communal fire alarm, emergency lighting, fire safety signage and portable firefighting provision.

The units are occupied by a diverse range of creative, music, wellness and office-based businesses, including recording and music production studios, instrumental and vocal tuition rooms, band practice rooms, beauty and wellness treatment rooms, a photography studio, offices, workshops and self-contained storage units.

On-site car parking is provided, with approximately 14-16 spaces at Business Works and approximately 8 spaces at Clothworks Business Centre.

Accommodation

The property provides a combined Gross Internal Area of approximately 13,294 sq ft (1,235 sq m) across the two buildings, summarised as follows:

Building	Units	Approx. GIA
Business Works	26	6,516 sq ft (605.36 sq m)
Clothworks Business Centre	21	6,778 sq ft (629.7 sq m)
Total	47	13,294 sq ft (1,235 sq m)

Occupational Information

Both buildings are fully income producing, with every unit currently occupied. Occupiers are granted licences to occupy on a monthly rolling basis, providing flexibility to manage the income and re-let units quickly. We are advised that there is an active waiting list of prospective occupiers, with most replacement occupiers historically drawn from this list, evidencing strong and consistent demand for the accommodation.

Business Works Occupational Schedule

Unit	Use	Sq Ft (NIA)	Sq M (NIA)	Income pa (excl. VAT)
1	Drumming tuition	210	19.50	£4,740.12
2	Music production	145	13.44	£3,564.24
3	Vocal coach	189	17.60	£3,780.36
4	Office	82	7.63	£1,968.48
5	Beautician	195	18.20	£3,480.60
6	Beautician	233	21.60	£3,840.72
7	Office	326	30.97	£5,868.84
8	Beautician	309	28.70	£5,280.96
9	Office	146	13.56	£3,481.08
10	Office	146	13.56	£3,721.20
11	Office	180	16.71	£3,601.32
12	Photography studio	151	14.02	£3,721.44
13	Music production	145	13.44	£3,565.56
14	Drumming tuition	237	22.05	£5,221.68
15	Band practice	127	11.76	£3,120.00
16	Drumming tuition	132	12.25	£3,385.92
17	Piano tuition	265	24.60	£6,086.04
18	Band practice	211	19.62	£4,442.16
19	Band practice	152	14.10	£3,734.28
20	Music production	116	10.80	£3,302.40
21	Music production	121	11.20	£3,482.52
22	Music production	181	16.80	£3,986.64
23	Reiki	150	13.96	£3,698.76
Container 1	Storage	80	7.50	£1,140.12
Container 2	Storage	80	7.50	£1,140.24
Container 3	Storage	80	7.50	£1,140.36
Total	26 units	4,389	408.57	£94,496.04

Clothworks Business Centre Occupational Schedule

Unit	Use	Sq Ft (NIA)	Sq M (NIA)	Income pa (excl. VAT)
1	Band practice	166	18.30	£2,490.10
2	Workshop	196	18.20	£2,940.20
3	Band practice	397	36.90	£4,450.30
4	Band practice	397	36.90	£4,480.40
5	Band practice	397	30.40	£3,660.50
6	Workshop	407	37.80	£4,250.60
7	Band practice	81	7.60	£1,460.70
8	Office / Workspace	87	8.10	£1,520.80
9	Band practice	300	27.90	£3,360.90
10	Storage	22	2.00	£401.00
11	Workshop	93	8.70	£1,621.10
12	Storage	98	9.10	£1,751.20
13	Band practice	363	34.50	£4,061.30
14	Band practice	202	25.40	£2,471.40
15	Band practice	142	13.30	£2,131.50
16	Workshop	565	52.50	£5,901.60
17	Band practice / Workshop	432	40.20	£4,681.70
18	Band practice	233	21.60	£2,851.80
19	Band practice	277	25.50	£3,101.90
20	Band practice	221	20.50	£2,852.00
21	Storage	54	5.60	£1,052.10
Total	21 units	5,060	481.00	£61,493.10

Combined current income across both buildings totals £155,989.14 per annum, exclusive of VAT.

Operational Costs

All occupiers pay a gross licence fee inclusive of service charge, covering the day-to-day running costs of the communal areas and shared services within both buildings. Electricity is separately metered and recharged to occupiers in addition to their licence fee, and is therefore cost-neutral to the landlord.

We are advised that the landlord’s operational costs, after recovery of electricity, amount to approximately £21,000 per annum. This produces a net income to the landlord of approximately £134,989 per annum from the combined gross income of £155,989.14 per annum summarised above.

Tenure

The property is held freehold.

VAT

We are advised that Business Works has not been elected for VAT, whilst Clothworks Business Centre has been elected for VAT.

Energy Performance Certificate

TBC.

Proposal

Offers in excess of £1,275,000

Offers are invited in excess of £1,275,000 (One Million, Two Hundred and Seventy-Five Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. This reflects a net initial yield of approximately 10% after landlord’s operational costs, and assuming standard purchaser’s costs.