Northgate Centre, Yarm Road Business Park, Lingfield Way, Darlington DL1 4PZ

Northgate Centre, Yarm Road Business Park, Lingfield Way, Darlington DL1 4PZ

£2,025,000

LOCATION

Darlington is a large and diverse market town in County Durham and the administrative centre for the Borough of Darlington which is a constituent member of the Tees Valley combined Authority and therefore part of the Tees Valley sub region of North East England.

The town has direct road and rail connections, located approximately 2 miles from Junctions 57 and 58 on the A1(M) with access to Newcastle-upon-Tyne to the north and south to Leeds and London.

Darlington rail station is positioned on the east coast line between Edinburgh and London Kings Cross with journey times of 26 minutes to Newcastle- upon-Tyne and 2 hours 20 minutes to London.

Durham Tees Valley International Airport lies approximately 8 miles east of the town.

Darlington is regarded as an important and increasingly diverse northern centre, already being both regional and national locations for Aldi, Amazon, EE, Nobia UK and many others. The strategic importance of the town was confirmed in the Chancellors March 2021 budget announcing the relocation of Government treasury offices from London to a new Northern Economic Campus based in Darlington with in excess of 1,500 personnel from various Government departments including now the Department for International Trade, being responsible for UK global business including post Brexit trading agreements. Darlington will be the Department’s second major base, the first outside London.

The town has a working age population of around 65,000 with a further 1.6 million within a drive time of one hour. The calibre of the local workforce, and therefore employers, is determined by the fact that 40% are employed in managerial, professional and technical occupations.

Yarm Road Business Park is located adjacent to the A66 Trunk Road, which links directly to the A1(M) providing excellent access to surrounding conurbations throughout the north east area. Teesside is approximately 10 miles East and Durham City 20 miles North.

SITUATION

Northgate Centre is situate on Yarm Road Business Park which is a well established and favoured mixed use commercial location on the outer eastern perimeter of Darlington accessed from the circular A66 road in turn connecting directly with Junction 57 of the A1(M).

Occupying a large and prominent corner site fronting Yarm Road/B6280 and Lingfield Way, the property benefits from good motorway access as well as direct access to the town centre and main line rail station along the B6280 road with a regular bus service. The A67 road links Darlington with the extended conurbation of Teeside where the recent Freeport status announced by Government is expected to underpin Teeside as the largest UK Freeport attracting significant inward investment.

Yarm Road Business Park is regarded as a well-established and pre-eminent location with a range of high-profile occupiers including Darlington Building Society and EE, the latter being one of Darlington’s largest employers with over 1,500 staff including their customer advisor services and business operations hub.

Occupiers north along Lingfield Way include Jewsons, JT Atkinson, Total Recycling Services, Darlington Building Society, Key Legal, Darlington Borough Council, Highways England and Nobia UK. Immediately east is Morton Park which includes a Premier Inn, Morrisons Supermarket, B&Q, Dunelm, BMI Woodlands Hospital together with Amazon’s Symmetry Park 465,000 sq ft distribution warehouse which opened in 2020. South, on the opposite side of Yarm Road, Cleveland Bridge are a global leader in design engineering, fabrication and construction of steel bridges whilst other nearby occupiers include Whessoe, Belway Homes, The Government’s DBS Department at Stephenson House and Cummins Business Services.

DESCRIPTION

The property now known as Northgate Centre was originally designed and developed around 1997 for Darlington Building Society as the Society’s headquarters. As a contemporary design of modern construction, the building provides high quality offices predominantly on two floors with a part third floor managerial suite, taking full visible advantage of the corner location.

The building is constructed around a steel frame with a mixture of curtain wall glazing and brick facia panels.

Internally, a double height striking glazed entrance leads to open plan floor plates offering flexibility although capable of being subdivided. Externally, a large site area has capacity to provide around 247 parking spaces and arguably offers potential for further development.

As a modern development designed to provide Darlington Building Society with a high quality headquarters building, specification details include:

  • Striking double height glazed
  • Open plan
  • Air conditioning
  • Raised access
  • Male, female and accessible toilets on each
  • Lift
  • Shower, changing and drying
  • Potential for around 247 parking spaces (1: 127 sqft).
  • Bicycle

ACCOMMODATION

In accordance with the RICS Code of Measuring Practice and IPMS3 the building extends to approximately 2,547 m2 (27,416 sq ft) of offices together with 370 m2 (3,982 sq ft) of standard facilities.

Floor Sq Ft M2
Ground
Offices 10,850 1,008
Standard Facilities 2,103 187
First
Offices 11,087 1,030
Standard Facilities 1,216 113
Second
Office 5,479 509
Standard Facilities 753 70
Overall Total 31,348 2,917

The overall site extends to approximately 1.76 ha (4.35 acres) and is bounded on the south side by the B6280 road, on the west by Lingfield Way, to the north by a development known as James Taylor House and BMI Woodlands hospital along the east boundary. A sweeping external access leads potentially to around 247 parking spaces together with landscaped areas, however the extent of the external area raises the possibility of further build development subject to planning.

TENURE

The whole property is held with Freehold title (Title number DU187291).

TENANCY

The property is let to Northgate Vehicle Hire Limited subject to a lease dated 20 April 2012 and a reversionary lease dated 8 March 2021 for an extended term expiring 19 April 2027. Both leases are fully repairing (subject to a schedule of condition) and insuring at a passing rent of £182,250 per annum with a tenant option to break 20 April 2024.

TENANT COVER

Northgate Vehicle Hire Limited Company Number 01434157 Experian Credit Check – Low Risk

Northgate Vehicle Hire Limited is a national motor vehicle hire company with ancillary services including vehicle monitoring and parts procurement. It’s parent and ultimate holding company is Redde Northgate Plc.

30.04.2018 30.04.2019 30.04.2020
Turnover 412,919,000 452,416,000 424,326,000
Pre Tax Profit 15,260,000 18,132,000 2,329,000
Total Net Worth 111,782,000 99,066,000 91,504,000

EPC

The property has an EPC rating of D-84 A copy of the certificate is available upon request.

VAT

The property is elected for VAT. Consequently VAT will be payable on the purchase price, however it is expected that a sale will be structured by way of a Transfer of a Going Concern (TOGC).

RATEABLE VALUE

The valuation office website indicates that the property is ascribed a rateable value of £164,000 and is described as an “office and premises.”

INVESTMENT RATIONALE

  • An opportunity to acquire a prominent office building at an attractive yield.
  • A modern building of high quality requiring minimal landlord cap-ex.
  • Darlington and the Teeside area are attracting significant inward investment.
  • Micro location continuing to strengthen with the recent Amazon development.
  • A large site area affording the potential of additional development.

ANTI-MONEY LAUNDERING REGULATIONS

In order to comply with Anti-Money Laundering Regulations prospective purchasers will be required to provide proof of identity/address and funding and such other documentation to satisfy the said regulations.

INVESTMENT PROPOSAL

Offers in excess of 2,025,000 are being invited, subject to contract and exclusive of VAT which reflects a net initial yield of 8% after standard  purchaser  costs. A purchase at this level equates to an attractive overall capital value of £64.49 per square foot.

FURTHER INFORMATION / VIEWING

For further information or viewing, please contact Edwin Thompson.

    Name (required)

    Email (required)

    Telephone (required)

    Your Message

    Like this property?

    Save Property

    Make an enquiry

    Contact Ruth Richardson BSc (Hons) MRICS at our Carlisle Office

    01228 548385

    Email us

    Quick Summary

    Price £2,025,000
    Town/City Darlington
    Status New
    Size (Acres)