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Investment Sale

Waterloo Square, South Shields, NE33 1AX


Please click on the link below to view a copy of our marketing particulars for this fully let retail warehouse scheme anchored by B&M to 2031. The salient terms of this investment opportunity are set out below. South Shields is a substantial town in the north east of England, 10 miles east of Newcastle city centre. Over 190,000 people live within 15 minutes’ drive of the property. Waterloo Square is strategically located between Asda and the new South Shields Bus and Metro Interchange. Developed in 2005, the scheme totals 40,925 sq ft GIA. Anchored by B&M (54% of the income) who have recently signed a new 10 year lease to extend into the former Debenhams, increasing their store size to 24,000 sq ft GIA. The other tenants are Next, River Island and also income generated by the car park. All three retailers have recently agreed new leases and ‘re-based’ the rents to sustainable levels. Any remaining rent free will be topped up by the Vendor. A current income of £372,167 per annum, a very low average rent of £8.43 per sq ft. Attractive WAULT of 6.7 years (5.7 years including break options). Formerly Open A1 (part food) planning consent. Now Use Class E, under the recent changes to the Use Classes Order. Site area of 2.32 acres (0.94 hectares). Long leasehold interest. 200 years from 25 April 2005 at a peppercorn rent. We are instructed to seek offers in excess of £3,490,000 (Three Million, Four Hundred and Ninety Thousand Pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 10.00%, taking into consideration an anticipated service charge shortfall and assuming purchaser’s costs of 6.50%.

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