Summary - 477/479 Durham Road, Gateshead, Tyne And Wear, NE9 5EX NE9 5EX
1 bed 1 bath Retail Property (high street)
Long-established convenience tenant in an affluent suburban retail parade with strong tech connectivity..
- Prominent refurbished retail unit, 7,511 sq ft (ground floor plus storage)
- Let to Heron Foods Ltd; tenant trading here 30+ years
- Passing rent £45,000 pa; offered at £675,000 (6.33% net yield)
- Lease expires 14 Jan 2034; only nine years remaining
- Tenant-only break on 14 Jan 2029 increases vacancy risk
- Upwards-only rent review Jan 2029 capped at 12.5% uplift
- No VAT on the sale; Heron Foods Delphi score 100 (Very Low Risk)
- Mortgage lenders may refuse due to short lease term
A prominent, recently refurbished retail unit on busy Durham Road in Low Fell, currently let to Heron Foods Ltd on a secure new lease dated January 2024. The store extends to a substantial 7,511 sq ft with ground-floor retail and first-floor storage served by a goods lift — well suited to grocery or convenience operators and attractive to income-focused buyers.
The investment produces a current passing rent of £45,000 pa and is offered at £675,000, reflecting a net yield of 6.33% after costs. Heron Foods have been trading from this location for over 30 years and carry a Very Low Risk Delphi score (100). There is an upwards-only rent review in January 2029 with a capped uplift to £50,625 pa.
Buyers should note material lease constraints: the property is held on a lease expiring 14 January 2034 with only nine years remaining and a tenant-only break clause on 14 January 2029. Mortgage lenders commonly refuse lending on short-lease commercial assets, so purchasers should ensure funding arrangements are in place or plan for cash purchase. There is no VAT on the sale.
Positioned in an affluent suburb with fast broadband, excellent mobile signal and good pedestrian footfall adjacent to multiple national and local retailers, this is a straightforward income asset with recent refurbishment and clear repositioning potential — subject to the short lease term and tenant break risk.
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