12a Silver Fox Way, Cobalt Business Park, Newcastle Upon Tyne, NE27 0BY

Description

The property comprises a detached office building of steel frame construction arranged over four storeys. Internally, the accommodation is arranged to provide open plan office floor plates around a full height atrium reception. The specification includes air conditioning, approximately 3 metre floor to ceiling heights and lift access to all floors. The second floor has been fitted out with raised flooring, LED lighting and refurbished WC's, while the other floor plates have been stripped out effectively to shell and core.

Accommodation

Approximately 5,263.65 sq m (56,657 sq ft) of accommodation over four floors. Open plan office floor plates around a full height atrium reception. The second floor has raised flooring, LED lighting and refurbished WC's; the other floor plates have been stripped out effectively to shell and core.

Location

Situated within the established Cobalt Business Park approximately 5.5 miles north east of Newcastle City Centre. Cobalt Business Park is designated by the UK Government as an Artificial Intelligence Growth Zone. Nearby occupiers include Proctor & Gamble, North Tyneside Council, EE, Accenture, Leeds Building Society, Village Hotel, Travelodge and Tesco Express. Northumberland Park Metro Station is nearby. Newcastle International Airport is situated 7 miles west of Newcastle city centre.

Tenure / Property Information

Investment Analysis

The guide is £1.2m–£1.4m, but the supplied evidence does not support a reliable market value or GDV. The two sold comparables are classified only as “Other”, differ materially in date and price, and no rental comparables are available. The £105,000 per annum figure relates to a proposed licence for 100 parking spaces, not office rent or a passing income. VAT applies and buyer, administration and other charges are not quantified. The building is vacant, with approximately 56,657 sq ft over four floors; only the second floor is described as fitted out, while the other floors are effectively shell and core. A formal valuation, measured survey, specification review and refurbishment cost plan are required.

Investment Snapshot

Strategy Recommendation

Do not underwrite on the supplied evidence alone. Proceed only after obtaining an independent commercial valuation, detailed building survey, refurbishment cost plan, office letting evidence and confirmation of VAT, acquisition and disposal costs.

Works Required

Obtain a full building survey and cost plan. The evidence supports considering fit-out of the floors described as shell and core, review of the existing air-conditioning, lift, raised flooring, LED lighting and WC provision, together with statutory, fire-safety and compliance checks. No specific defect or quantified works allowance is evidenced.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

A BRRR assessment cannot be quantified. The property is vacant and has a long lease with peppercorn ground rent, but refurbishment costs, achievable office rent, finance costs, valuation and refinance terms are not supplied. The proposed parking licence may provide supplementary income if renewed, but it was not renewed for auction purposes and is not a confirmed passing rent.

Buy-to-Let Analysis

BTL analysis cannot be established because no sufficiently specific office rental comparables or passing rent are supplied. The £105,000 annual figure is an auctioneer estimate for a possible 100-space parking licence, not rent for the building and not a confirmed income stream. The property is vacant, and VAT and unquantified acquisition costs would also affect total cost.

Flip Analysis

A flip appraisal cannot be quantified because no supported GDV, refurbishment budget, resale costs or comparable office valuation evidence is available. The guide price cannot be treated as GDV. VAT and additional seller or third-party charges may materially affect project cost.

Investor Risks & Due Diligence

• No sufficiently specific office rental comparable or confirmed passing rent is supplied.

• The £105,000 annual figure is only an auctioneer estimate for a proposed parking-space licence, not building rent.

• The property is vacant and most floor plates are described as stripped out to shell and core.

• Refurbishment and fit-out costs are unquantified.

• VAT applies, while buyer, administration and other charges are not quantified.

• The sold comparables are classified as “Other” and are not sufficient to establish a supported market value.

• The 125-year lease commenced in 1996 and has an approximately 94-year unexpired term as of the current date; the supplied evidence does not state the exact remaining term or assignability details.

Recommendation

Do not underwrite on the supplied evidence alone. Proceed only after obtaining an independent commercial valuation, detailed building survey, refurbishment cost plan, office letting evidence and confirmation of VAT, acquisition and disposal costs.

Strategy Rating

Analysis Confidence

The property description, lease terms, size, vacancy and guide are supplied, but there is no reliable GDV evidence, no specific office rental evidence, no quantified works budget and no quantified buyer or selling costs.