Derwent Court, Earlsway, Team Valley

A rare opportunity to acquire a prime multi-let industrial investment situated within Team Valley, the North East’s premier industrial and business location.

Derwent Court comprises a modern industrial development extending to approximately 55,974 sq ft, arranged across six industrial units within two detached and two semi-detached blocks surrounding a central courtyard. Constructed in 2001, the estate provides high-quality industrial accommodation with strong occupational appeal and significant asset management potential.

Positioned prominently on Earlsway, the property benefits from exceptional connectivity, with direct access to the A1 Western Bypass via two junctions, approximately 1 mile south of Gateshead town centre and 3 miles south of Newcastle city centre.

Team Valley remains one of the UK’s most established industrial estates, extending to over 700 acres and accommodating more than 740 businesses, employing approximately 24,000 people. Major occupiers nearby include Royal Mail, DPD, Booker, De La Rue and Express Engineering, alongside extensive retail and amenity provision including Team Valley Retail World and Sainsbury’s.

The property provides modern specification industrial space, including:

-Steel portal frame construction
-7m eaves height to warehouse accommodation
-Clear span warehousing/production space
-First-floor office accommodation
-Extensive central yard and parking provision
-Landscaped site environment

The investment currently generates a passing rent of £389,100 per annum, offering strong reversionary potential through lease events and rental growth opportunities. The estate benefits from a diverse tenant line-up, with established occupiers across manufacturing, renewable energy, industrial services and trade sectors.

Investment Highlights

-Prime multi-let industrial investment opportunity
-Located on the North East’s premier industrial estate
-Modern industrial accommodation extending to 55,974 sq ft
-Strong road connectivity with immediate A1 access
-Diverse occupational tenant base
-Asset management and rental growth potential
-Passing rent of £389,100 per annum

Tenure
Long leasehold for a term of 150 years from 19 December 2018, at a peppercorn rent, with over 142 years unexpired.

Price
Offers sought in excess of £5,300,000, reflecting a net initial yield of 6.89% assuming purchaser’s costs of 6.60%, and a reversionary yield of 7.92% based on ERV.

Elected for VAT, sale dealt with under TOGC regulations.