The owner of a grade-A office block on a business park in Peterlee, County Durham, has decided to risk the vagaries of the UK property market by placing his building at auction with no reserve.
That means the largely vacant block built in 2006 could be snapped up for just a few pounds if nobody else bids.
“Our vendor has instructed us to sell this property with no reserve because he is happy to let the market dictate the price they’re willing to pay,” said Toby Limbrick, director of Network Auctions.
The property is understood not to have been on the market previously. Limbrick said he had been discussing a strategy for disposal for several months and the vendor – a regular client – considered selling with a guide and reserve. However, he decided to offer the lot with no reserve because he wants to realise a sale and “likes the idea of relying on the market to prove its value”.
Unit 2C, Whitehouse 3, on Traynor Way at Whitehouse Business Park was valued at £880,000 in October 2017. It provides 46,596 sq ft of accommodation on a 2.2 acre site with a 190-bay car park. It is designed for corporate occupation, but may have potential for other uses subject to planning.
A small section of the second floor (1,650 sq ft) is let until 2028 producing £2,574, increasing to £3,003 in March 2019. It is occupied on an underlease by a clothing company.
“There are major occupiers close by including Orange, Npower and HMRC and the adjacent building (2A) is let to the NHS at £4 per sq ft, equivalent to £186,384 pa at Unit 2C,” said Limbrick.
The auction will take place on 12 September 2018 at Grosvenor House Hotel, W1.
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