This was an off-market acquisition of the former TSB building on Colima Avenue in Sunderland which extended to 29,165 sq ft.
TSB bank PLC were not in occupation but were still liable for rent for 1.5 years.
We acquired Riverside House for Cable Properties & Investment Limited, and lined up Northern Powergrid (NPG) as the new tenant confidentially in the background. During legals we also had to engage with TSB to line up a surrender of the existing lease.
To keep it simple, we simultaneously exchanged on the acquisition, surrender and new lease at the same time. Simultaneous completion followed 20 working days after exchange.
Everything completed on 5th February 2024, and overnight we have effectively doubled the value of the building.
We purchased the building for £1.55m, received surrender money from TSB and the letting to NPG was on a 10 year lease with a break at 5 at £277,000 pa (£9.50 psf).
NPG are now in the process of spending circa £1m on their fit[1]out which they expect to complete by Easter 2024
Client: Cable Properties & Investments – Steve Cole
