Cobalt 12, Cobalt Business Park, Newcastle Upon Tyne

Description

Cobalt 12 comprises a substantial four-storey modern office building arranged over ground and three upper floors, extending to approximately 98,343 sq ft (9,136 sq m) NIA. Constructed in 2001, the property is of steel-frame construction with composite-clad and brick elevations and a feature glazed curtain wall to the eastern elevation. The accommodation is arranged around a central core, with largely open-plan floorplates configured as two wings, providing flexibility for potential subdivision on a floor-by-floor or wing-by-wing basis. The property occupies approximately 5 acres and benefits from 415 on-site car parking spaces. Subject to obtaining all necessary planning and other statutory consents, the property may offer potential for alternative uses.

Accommodation

Ground Floor: 2,369.45 sq m (25,505 sq ft); First Floor: 2,271.89 sq m (24,455 sq ft); Second Floor: 2,270.82 sq m (24,443 sq ft); Third Floor: 2,224.08 sq m (23,940 sq ft); Total: 9,136.24 sq m (98,343 sq ft).

Location

Situated within Cobalt Business Park, approximately 6 miles (10 km) east of Newcastle upon Tyne. Cobalt Business Park extends to approximately 175 acres and provides around 1.68 million sq ft of Grade A office accommodation alongside on-site amenities. The property is close to the A19. Northumberland Park Metro station is approximately a 20-minute walk or 5-minute bus journey away.

Tenure / Property Information

Investment Analysis

Cobalt 12 is a substantial 98,343 sq ft leasehold office investment occupied entirely by Procter & Gamble Technical Centres Limited. The available evidence confirms the guide price of £2,000,000, equivalent to approximately £20.34 per sq ft, but provides no completed sales, rental evidence, passing rent, valuation, or GDV evidence. The occupational leases expire on 18 April 2027, creating significant near-term lease-renewal and vacant-possession uncertainty. Alternative uses are only potential and subject to consents.

Investment Snapshot

Strategy Recommendation

Do not underwrite at the guide as a yield-led investment without obtaining the passing rent, lease documents, tenant renewal position, valuation evidence, VAT treatment and all auction charges. Consider only as a specialist commercial acquisition after detailed lease and vacant-possession risk assessment.

Works Required

No specific repair, refurbishment or compliance works are evidenced. The building may require condition, building-services, EPC, fire-safety and statutory due diligence, but no cost allowance can be supported from the supplied information.

Rental & Market Context

Potential BRRR Position

A BRRR analysis cannot be supported without a passing rent, refurbishment budget, valuation/GDV or refinance terms. The short remaining occupational lease term is a major refinance and income-continuity consideration. The long headlease terms are stated as approximately 95 years unexpired, subject to the two lease structures and ground rents.

Buy-to-Let Analysis

A BTL yield cannot be established because no passing rent or sufficiently specific rental evidence is supplied. The investment is entirely let, but the leases expire on 18 April 2027 and renewal terms, rent and tenant intentions are unknown. Buyer premium, VAT and other possible charges are also not quantified.

Flip Analysis

A flip surplus cannot be calculated because no supported GDV, resale evidence, works budget, selling allowance or transaction-cost schedule is provided. Potential alternative uses are expressly subject to planning and other statutory consents and should not be treated as an established exit.

Investor Risks & Due Diligence

• Occupational leases expire on 18 April 2027, creating near-term renewal, re-letting and potential vacancy risk.

• Passing rent, rent review terms and tenant renewal intentions are not supplied.

• No completed sales or sufficiently specific rental comparables are supplied, so value and yield cannot be established.

• Buyer premium, VAT and possible seller or third-party charges are not quantified.

• Any alternative use is subject to planning and other statutory consents.

• No condition, building-services, EPC or statutory-compliance evidence is supplied.

• The asset is held under two co-terminus head leases with a £30 per annum ground rent on the plot lease and a peppercorn ground rent on the car park lease.

Recommendation

Do not underwrite at the guide as a yield-led investment without obtaining the passing rent, lease documents, tenant renewal position, valuation evidence, VAT treatment and all auction charges. Consider only as a specialist commercial acquisition after detailed lease and vacant-possession risk assessment.

Strategy Rating

Analysis Confidence

Property size, tenure, occupation, lease dates and guide price are supplied, but rent, valuation, comparables, condition, EPC, costs, VAT treatment and exit evidence are absent.