Knight Frank Newcastle’s Capital Markets team is celebrating the successful disposal of a prime North East industrial property for in excess of the asking price – at £6.23m – on behalf of property investors, Hansteen.
An unnamed overseas investor has purchased the 72,000 sq. ft. tenanted unit on New York Industrial Park in North Tyneside, which has a healthy net initial yield of 5.50%.
The modern property has proved to be a sound investment for Hansteen which refurbished and modernised the property before Knight Frank’s Mark Proudlock secured a new letting to an international packaging manufacturer on a 14-year lease.
Partner at Knight Frank, Douglas Cranston, who negotiated the deal, comments: “This disposal is a fantastic result for all concerned and we are very proud to have been involved at every stage of Hansteen’s investment journey – from the initial purchase, to re-letting the building and the recent investment sale.
“The transaction provides further evidence of the significant appetite for the industrial sector, in particular for assets let to secure tenants, for an unexpired term in excess of 10 years with future rental growth potential. The exit yield at 5.50% shows there continues to be yield compression for prime assets in this tier of the market.”
London-based Hansteen, which has a regional office in Gateshead, specialise in buying industrial properties that can be improved to add value.
Craig Johnson, Regional Manager of Hansteen in the North East, said: “The property was sensibly priced and had all the core investment fundamentals that investors are looking for. This has proved a great value-add play for us and shows there continues to be robust inward investment from overseas investors for the North East.”
Knight Frank LLP is the leading independent global property consultancy. Its Newcastle office has a 50-strong team who provide property management, office and industrial buildings agency, building consultancy, ratings and lease advisory and property valuations. The team is very proactive in the market, using its unrivalled access to the latest markets research to ‘know things first’. They are a friendly team, with personality, that deliver a personal service.