Castlegate House, Castlegate Way, Dudley, DY1 4TA

Secure modern office investment opportunity in a high profile location

Property details

Type Investment, Office
Tenure Freehold.
Price £3,950,000
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Features
  • 21,375 sq.ft (1,985.8 sq.m) of grade A accommodation.
  • 1.45 acres (0.59 ha) site providing 98 car spaces.
  • Let in its entirety to Towergate Underwriting Group Ltd, (trading
  • as Footman James).
  • Let until November 2024, at a low passing rent of £288,000 per annum, with significant rental uplift potential on renewal.
Location
Castlegate House is located at Castlegate Business Park, one of the Black Country’s premier mixed-use destinations. The park is situated on the north-eastern edge of Dudley town centre, overlooking the A461 and A4123, two of the main arterial routes into the area. Birmingham city centre is 10 miles to the East and Wolverhampton city centre is 6 miles to the north. The park is very accessible, with excellent road links. Junction 2 of the M5 is less than 3 miles to the east. The M5 links to the M42 to the south and the M6 to the north. Birmingham International Airport is accessible at 18 miles to the east and Dudley Port Railway Station is within walking distance to the north, which provides regular services to Wolverhampton (10 minutes), Birmingham New Street (15 minutes). Occupiers benefit from excellent amenities and facilities such as Tesco Extra, Nandos, McDonalds, Pizza Hut, Starbucks and Premier Inn. Castlegate House also overlooks the Dudley Zoological Gardens, a popular 40 acre tourist attraction within the grounds of Dudley Castle.
Description

Castlegate House comprises a modern office building, over two floors, extending to 21,375 square feet (1,985.8 sq m). The building, constructed in 2002 by Amec Developments, is of a steel frame construction with brick cavity walls, external metal cladding and floor-to-ceiling glazed core areas.

The building is prominently located on the roundabout at the entrance to the Castlegate scheme offering excellent visibility from the A461.

The building has been extensively refurbished by the existing tenant to provide high quality and modern office accommodation. The space is a traditional office layout, predominantly open plan, with a number of separate meeting rooms and good sized staff breakout areas.

Price
We are instructed to seek offers in the region of £3,950,000 (Three Million, Nine Hundred and Fifty Thousand pounds) subject to contract and excluding VAT. A purchase at this level reflects a net initial yield of 6.84% (after allowing for purchaser’s costs of 6.53%).
Tenancy
The property is let in its entirely on a full reparing and insuring lease to Towergate Underwriting Group Ltd, trading as Footman James. It is held on a 10 year lease from 17th November 2014 and the passing rent is a low £288,000 per annum. There is excellent potential for rental uplift upon renewal.
Footman James has been established since 1983 and is a specialist insurer in vintage and classic cards. They have over 100,000 policyholders and employ over 100 people. They were acquired by Towergate Underwriting Group Ltd in 2013. Towergate Underwriting Group has a D&B Rating of 5A 2.
VAT
We understand that the building is elected for VAT and the transaction will be treated as a transfer of a going concern (TOGC).
EPC
Available upon request
Anti Money Laundering
In accordance with anti-money laundering regulations, two forms of identity and confirmation of the source of funding will be required from the successful purchaser.