Partner Article

Cash injection at Gateshead fire-damaged property brings new tenant

Commercial property consultancy, Naylors Gavin Black, has secured a new tenant for a large industrial unit in Gateshead that was badly damaged by fire.

Property investors, Armstrong Brooks - which acquired the 40,000 sq. ft. property on Bath Road in 2021 - has invested over £500,000 to upgrade it and repair significant fire damage that occurred under a former ownership.

Acting for the previous owners, Naylors Gavin Black negotiated a sale of the Freehold to Armstrong Brooks, who then retained the firm to act as agents.

Naylors Gavin Black advised on the required refurbishment to maximise the asset in the current market and has let it for £185,000 per annum to fast-growing local company GAP Group. The site houses their new white goods recycling facility, GAP Renew.

The low bay warehouse and flat roof office block have both been re-roofed, along with upgrading of the office space and welfare facilities. Whilst the warehouse space has benefitted from new LED lighting, skylights and redecoration of the walls, steel supports and concrete floor.

Senior surveyor at Naylors Gavin Black, Duncan Christie, said: “This is a great result for, not only our client, Armstrong Brooks, in terms of a healthy return on their investment but also for Gateshead because GAP has given the property an environmentally sustainable future and created new jobs.

“High tenant demand for industrial premises is why so many investors are targeting the industrial sector at present. Our in-depth knowledge of the market and requirements of potential occupiers allowed us to assist Armstrong Brooks on a strategy that would deliver maximum returns. Interest in the unit was high and we are delighted with the end result.”

GAP Renew is now fully operational at the Bath Road unit and aims to reuse and recycle at least 500,000 electric units in its first year.

Peter Moody, Director of GAP Group comments: “The landlord worked extensively with us to ensure we got the exact specification we need to provide our clients with the very best quality solutions to meet their refurbish and recycle requirements.”

Bob Cory, Managing Director at Armstrong Brooks, added: “We have worked with Duncan Christie and Naylors Gavin Black for a number of years and value their advice with regards to the assets we hold in our portfolio in the North East of England.

“The acquisition of this unit aligned with the objectives we have set for our wider portfolio and we are very happy to secure GAP Group - a tenant with strong growth potential and a great track record in the North East region. We hope they will be happy at the site for many years to come.”

This was posted in Bdaily's Members' News section by Naylors Gavin Black .