Retail premises for sale in Norton Road, Stockton-On-Tees TS18

Investment Consideration:
Gross Initial Yield: 5.85%
Rental Income: £17,536.83 p.a.
VAT is not applicable to this property
Entire property Let to Coral Racing Limited until 2027, no breaks
Rent review in September 2026. Fixed increase by a minimum of 2.5% p.a. Compounded
Comprises two ground floor shops with basement (no access) and 4 x 1-Bed Flats on upper floors.
Development potential to renovate the building and develop additional residential accommodation sttp
Property benefits from building restoration grants which covers 73.5% of the eligible costs
Occupiers close by include Argos, Debenhams and Costa Coffee, amongst a range of local traders.

Property Description:
Comprises double fronted retail shop previously t/a Coral and additional lock-up shop to the rear, with separately accessed staircase leading to four flats on the upper floors, providing the following accommodation and dimensions:
Ground Floor - 160 sq m (1,722 sq ft)
Two Retail Shops (1 x Double Fronted)
First Floor:
Flat 1 - 35 sq m (377 sq ft)
Bedroom, Kitchen, Living Room, Bathroom/WC
Flat 2 - 45 sq m (484 sq ft)
Bedroom, Kitchen, Living Room, Bathroom/WC
Second Floor:
Flat 3 - 67 sq m (721 sq ft)
Bedroom, Kitchen, Living Room, Bathroom/WC
Flat 4 - 37 sq m (398 sq ft)
Bedroom, Kitchen, Living Room, Bathroom/WC
Total area size: 344 sq m (3,702 sq ft)

Development:
The Stockton Northern Gateway Townscape Heritage project will focus on heritage around the Northern end for the High Street leading into Norton Road. Grants are available for exterior repairs and reinstatement of historic features using high quality natural materials and traditional methods, and for structural requirements to ensure the future viable use of the premises. Works must be carried out in a way which protects and enhances the fabric and character of historic buildings and which preserves or enhances the character and appearance of the area.
Grant Rate: The grant rate available is 73.5% of eligible costs. The maximum grant available is property dependent, the th Officer is able to advise further on this.

Tenancy:
The entire property is at present let to coral racing limited for a term of 16 years from 28th February 2011 at a current rent of £17,536.83 p.a. The lease provides for a rent review in September 2026. The rent is to be increased by a minimum of 2.5% p.a. Compounded. Therefore, the rent will rise to a minimum of £19,841.31 p.a. In September 2026. The lease contains full repairing and insuring covenants. The tenant is not currently in occupation. We understand that Flats 1-4 are currently vacant.

Location:
Stockton-on-Tees is a major commercial centre located approximately 30 miles south of Newcastle upon Tyne and 4 miles west of Middlesbrough. The town benefits from excellent road communications, being two miles west of the A19 link road and one mile north of the A66 dual carriageway, which links the A19 with the A1(M) Motorway. This corner property is situated on the east side of Norton Road, at its junction with King Street.