Merrington Lane Industrial Estate
Spennymoor
County Durham
DL16 7XL

Substantial Freehold Industrial Investment

  • Majority of income secured by DS Smith Corrugated Packaging Limited
  • Industrial estate comprising approximately 425,086 sq ft of accommodation
  • Established industrial location close to Junction 61 A1(M)
  • Asset management and development potential (subject to consents)
  • Total approximate site area of 17.735 acres (7.177 hectares)
  • Lot
    26
  • Auction
    18/Oct/2018
  • Rent
    £161,362 per Annum Exclusive
  • Status
    Withdrawn Prior
  • Price*
     
  • Sector
    Industrial/Warehouse
  • Auction Venue
    The Radisson Blu Portman Hotel
    22 Portman Square
    London W1H 7BG
  • On Behalf of a Major Investment Manager
Important Property Update
  • Merrington Lane Industrial Estate<br>Spennymoor<br>County Durham<br>DL16 7XL
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Property Information

Location
Miles
6 miles south of Durham
20 miles north-west of Middlesbrough
21 miles south of Newcastle upon Tyne
Roads
A688, A167, A1(M) (Junction 61)
Air
Durham Tees Valley International Airport
Situation

Spennymoor is a popular town in County Durham, just 6 miles south of Durham city centre. The property is located approximately 2.5 miles from the A1(M), just off the A688. The site is 1 mile south of Spennymoor town centre with the surrounding area being traditionally predominantly industrial. The adjacent site has been acquired for residential development and has outline planning for 425 dwellings. Barratt Homes is in the process of building 366 new homes on a nearby site, known as Merrington Park. Nearby industrial occupiers include Thorn Lighting, Jewson and J Mitchinson.

Tenure

Freehold.

Description

The property, a multi-let industrial estate, comprises some 39,491.74 sq m (425,086 sq ft) of accommodation, which is capable of subdivision into 13 separate units. The property has a total approximate site area of 17.735 acres (7.177 hectares).

VAT

VAT is applicable to this lot.

EPC

The EPC will be available to view online in the solicitor’s legal pack.

Tenancy & Accommodation

UnitFloorUseFloor Areas (Approx)TenantTermRent p.a.x.Reviews/
(Reversion)
Units
1 & 2
GroundIndustrial
6,637.08 sq m
(71,441 sq ft)
D.S SMITH
CORRUGATED
PACKAGING
LIMITED (1) (2)
10 years from
09/03/2014
£124,74709/03/2019
(08/03/2024)
P ShopGroundIndustrial
863.16 sq m
(9,291 sq ft)
D.S SMITH
CORRUGATED
PACKAGING
LIMITED (1) (2)
A term of years from
16/12/2016
£26,20209/03/2019
(08/03/2024)
Units
3 & 4
GroundIndustrial
10,450.66 sq m
(112,490 sq ft)
VACANT
POSSESSION
   
Units
5 & 6
GroundIndustrial
6,759.90 sq m
(72,763 sq ft)
VACANT
POSSESSION
   
Unit 7GroundIndustrial
856.47 sq m
(9,219 sq ft)
PS MANAGED
SOLUTIONS
LIMITED (3)
10 years
from
31/03/2017
£6,913 rising to
£13,827 on
1/04/2019 &
£18,500 on
01/04/2020
30/03/2022
(31/03/2027)
Units
8 & 9
GroundIndustrial
4,182.95 sq m
(45,025 sq ft)
VACANT
POSSESSION (3)
   
Unit 10GroundIndustrial
9,426.03 sq m
(101,461 sq ft)
PART VACANT (4)   
Old Boiler
House
GroundIndustrial
150.50 sq m
(1,620 sq ft)
VACANT
POSSESSION
   
Boiler
House
GroundIndustrial
164.99 sq m
(1,776 sq ft)
DODDS SITE
SERVICES LIMITED
2 years from
28/09/2016
£3,500Holding
Over
Total
39,491.74 sq m
425,086 sq ft
  £161,362 rising
to £172,949 in
2020
 

(1) For the year ending 30 April 2017, DS Smith Corrugated Packaging Limited reported a turnover of £95,559,000, pre-tax profits of £10,782,000 and a total net worth of £52,336,000 (Source: Experian Group 14/09/2018). The tenant is currently benefiting from a rent free period on both units 1 & 2 and P Shop due to expire on the 24/12/2018, which was granted in exchange for removing the 2019 break option.
(2) There have been discussions with DS Smith Corrugated Packaging Limited to take a lease of units 5 & 6 in addition to their existing space on the estate.
(3) Units 7,8 and 9 benefit from a 20 year roofing warranty from Renolit Cramlington Limited expiring 26/01/2037 - further information can be found in the legal pack.
(4) PS Managed Solutions occupy 5,000 sq ft by way of a licence and pay service charge on that element and bear full rates liability for unit 10.

Property Documents

  • Catalogue Page
    Updated Date
    26.09.18
    File Size
    1 MB
    View PDF
  • Site Plan
    Updated Date
    26.09.18
    File Size
    1 MB
    View PDF
  • Common Auction conditions
    Updated Date
    27.03.17
    File Size
    124 KB
    View PDF
  • Memorandum of Sale
    Updated Date
    27.03.17
    File Size
    27 KB
    View PDF

Contacts

Acuitus
Gwen ThomasGwen Thomas +44 (0)20 7034 4857 +44 (0)7809 363549gwen.thomas@acuitus.co.uk
Georgina RobertsGeorgina Roberts +44 (0)20 7034 4863georgina.roberts@acuitus.co.uk
Seller's Solicitors
Reed Smith LLP Broadgate Tower, 20 Primrose Street
London
EC2A 2RS
Katie Wayne 020 3116 3879kwayne@reedsmith.com

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