Newton Aycliffe Embleton View School, Kingdom Hall, Alington Road, Newton Aycliffe, County Durham

Description

Freehold education investment comprising accommodation extending to 269.35 sq m (2,899 sq ft), let to ALD Group Ltd guaranteed by Keys PCE Ltd, located in a predominantly residential area close to the town centre. Total site area approximately 0.111 ha (0.274 acres). VAT is not applicable. Six Week Completion Available.

Accommodation

Accommodation extending to 269.35 sq m (2,899 sq ft)

Location

Newton Aycliffe is located 7 miles north of Darlington, 11 miles south of Durham and 26 miles south of Newcastle upon Tyne. The town lies on the A167, which links to the A1M(J59) and Darlington to the south, and Durham to the north. Newton Aycliffe Rail Station provides services to Bishop Auckland, Middlesbrough and Darlington, from where East Coast Mainline connections are available. The property is situated in a predominantly residential area on the west side of Alington Road, close to its junction with Walcher Road.

Tenure / Property Information

Investment Analysis

The supplied evidence does not support a reliable GDV or investment valuation. The closest named comparable at the same Alington Road address sold for £140,000 in September 2024, with an earlier sale at £103,500 in September 2022. The auction guide of £300,000–£325,000 is therefore materially above those recorded sales, although the evidence does not confirm whether the comparable was identical in size, specification, tenancy or lease terms. No passing rent, lease rent, yield, EPC, condition report or detailed lease terms are supplied. A valuation cannot be established without this information.

Investment Snapshot

Strategy Recommendation

Do not bid on the supplied evidence alone. Obtain the passing rent, complete lease and guarantee, tenant covenant information, special conditions, condition/compliance details and an independent commercial valuation before considering the property.

Works Required

No refurbishment works are evidenced. The property should be inspected and the lease, repair obligations, compliance position and condition verified before bidding; no works allowance can be supported from the supplied data.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

BRRR analysis is not supportable because there is no rent, refurbishment budget, finance cost, valuation or evidence of residential conversion/refinance eligibility. The existing commercial education use and lease should not be assumed to support a residential refinance.

Buy-to-Let Analysis

The property is let to ALD Group Ltd with a guarantee from Keys PCE Ltd and a lease stated to expire in 2039, but no rent or rent review provisions are supplied. BTL income, yield, debt coverage and value cannot be calculated. The tenant and guarantor covenant, lease obligations and actual passing rent require verification.

Flip Analysis

A flip appraisal cannot be established. No refurbishment scope or cost is evidenced, and the only directly relevant supplied sales are £140,000 in 2024 and £103,500 in 2022, compared with the £300,000–£325,000 guide. Resale costs and a supported GDV are unavailable.

Investor Risks & Due Diligence

• The £300,000–£325,000 guide is materially above the supplied same-address comparable sale at £140,000 in 2024.

• Passing rent, rent reviews and lease terms are not supplied, preventing income and yield analysis.

• Investment performance depends on ALD Group Ltd and the Keys PCE Ltd guarantee, but covenant and guarantee details are not provided.

• Condition, compliance and repair obligations are not evidenced.

• Additional seller or third-party charges may apply and are not quantified.

• The existing education use and lease may limit refinancing or alternative use, which has not been assessed.

Recommendation

Do not bid on the supplied evidence alone. Obtain the passing rent, complete lease and guarantee, tenant covenant information, special conditions, condition/compliance details and an independent commercial valuation before considering the property.

Strategy Rating

Analysis Confidence

The tenure, occupancy, lease expiry, accommodation, site area and comparable sales are supplied, but rent, lease economics, condition, costs, valuation evidence and additional fees are missing.