South Shields is a coastal town at the mouth of the River Tyne, about 5 miles east downstream from Newcastle in County Durham. It has a population of approximately 75,000, being the third largest town in Tyneside after Newcastle and Gateshead.
Predominantly a commuter town, South Shields boasts a good infrastructure network with the A19 and Tyne Tunnel at Jarrow providing access into Newcastle, while the A194(M) provides direct access to the A1/A1(M).
Public transport is also well served, with the Tyne & Wear Metro running through South Shields Metro Station and serving the wider region.
The property itself holds a prominent position on the corner of Mortimer Road and Cauldwell Avenue. The area is dominated by post war housing, Mortimer Primary School (opposite) and Mortimer Community College.
A former pub, currently owned by Admiral Taverns, this old public house is to undergo a full refurbishment by developers Midlands Assured. This unit is 3,293 Sq.ft with 19 parking spaces, which is pre-let to the Co-operative Food Group.
Rational for Purchase
This is another high quality investment which has a strong tenant quality and covenant in the form of the national Co-Operative Group.
This Co-op development is based on Mortimer Road which is across from a primary school and community college, and also surrounded by houses, which is an important advantage for any convenience store. Local stores are proving popular when close to residential developments which shopper using them more regularly.
This type of location is perfect for a convenience store and in previous scheme of this nature have proved very successful for both investors and tenant.
The purchase price is £820,000, before purchase costs, comprising of the freehold property including all refurbishment costs.
It is intended that this syndicate will not raise borrowing, thus we are labelling it an ‘income syndicate’ because of the higher initial yield, which arises simply because there are no borrowing costs.
This does increase the initial investment subscription, but with the longer term prospects for this site, the syndicate could deliver on both income and capital growth.
Initial investment will be £45,000 to £55,000 per investor.