Hebburn, Mountbatten Shopping Centre

Rent: £0

Sale price: £350,000

Region: Tyne and Wear

Town/City: Hebburn

Investment Considerations

• Prominent and established shopping centre in the heart of Hebburn Town Centre situated on Station Road with adjacent occupiers including Aldi, and Asda
• Extensive free parking adjacent to the centre
• Hebburn has a population of 23,000 people and the town centre has seen significant redevelopment over recent years. This includes Hebburn Central, a new leisure centre, which opened in 2020
• Over 50% of the income from national tenants
• Strengthening budget and convenience retail market of which this scheme is focussed
• Numerous asset management angles available to improve the tenant mix and increase rental income

LOCATION

Hebburn is part of the South Tyneside conurbation and is situated approximately 4 miles to the south east of Newcastle upon Tyne and 3 miles to the east of Gateshead Town Centre.

Mountbatten Shopping Centre is situated in the heart of Hebburn Town Centre.  It sits near the junction of Station Road and Victoria Road West and benefits from excellent public transport links with multiple bus routes nearby as well as Hebburn Metro Station approximately 200m from the centre.

DESCRIPTION

The shopping centre is available in two parades facing onto the pedestrianised St James Mall and St Johns Precinct. The individual retail units are set over ground and first floor. The units have servicing access to the rear. There is ample free car parking in the adjacent public car park off Station Road. Current occupiers of the shopping centre include: Greggs. Ladbrokes, Heron, Subway, Coral, Savers, Farmfoods & Boots.

TENURE
Our client owns the long leasehold interest of Hebburn Shopping Centre for a period of 125 years from 30 August 1996.  In addition, they own the freehold interest of 14A, B and C St Johns Precinct which is also included in the sale.

OCCUPATIONAL MARKET
• Overall Retail spending grew 0.5% when compared to the same period last year as consumers spend more on Grocery (+4.0%), and a Discount Stores (+2.7%) (Barclays Consumer Spending Report Oct 22)
• The current market provides opportunity to reposition the asset for future growth and changes in retail habits
• Multiple local housing developments planned for Hebburn by developers including Barratt Homes, Keepmoat, and other national house builders

ENERGY PERFORMANCE CERTIFICATE (EPC)
EPC information is available upon request.

TENANCY SCHEDULE

See attached investment brochure

INCOME
Rental guarantees on the void units will be provided for 12 months and therefore the total gross income will be £428,688 pa excluding VAT.

SERVICE CHARGE
The estate has a modest service charge which runs from 1st January to 31st December. The 2022 budget was £27,900. The service charge covers costs such as security, gritting, fabric repair and maintenance, cleaning and health and safety.

NON-RECOVERABLE COSTS
Current annual non-recoverable costs on void units, which includes service charge and insurance, is £6,800.47 plus circa £18,000 of empty rates following rates mitigation.

PROPOSAL

Our client is seeking offers in excess of £3,500,000 for their long leasehold and freehold interests in the property, exclusive of VAT and subject to contract.

ASSET MANAGEMENT OPPORTUNITIES
• Regear existing leases, instigate outstanding renewal or upcoming renewal negotiations on existing leases and improve the tenant mix
• Reduce the retail footprint with alternative uses/reconfiguration considered
• Public realm works to enhance the scheme

VAT
All prices quoted are exclusive of VAT.

LEGAL COSTS
Each party will be responsible for their own legal costs incurred in the transaction and any VAT in addition.

ANTI-MONEY LAUNDERING
In accordance with Anti-Money Laundering Regulations, two forms of identification and confirmation of the source of funding will be required from the successful purchaser.

VIEWING ARRANGEMENTS

PETER TOWNSEND
T: 07713 151 970
E: pete@atretail.co.uk

or joint agents

CHRIS DONABIE
T: 07702 528 879
E: chrisd@naylorsgavinblack.co.uk

FERGUS LAIRD
T: 07768 063 109
E: flaird@naylorsgavinblack.co.uk