Investment Agency makes significant post-Brexit acquisition
Our investment agency team has completed the acquisition of a multi-let industrial property, Raleigh Court at Riverside Business Park, Middlesbrough for in the region of £4 million.
The deal, which is the firm’s first major post-Brexit investment transaction, was completed on behalf of retained client, Yorkshire-based Leven Estates and represents a yield of 8.25%.
Fergus Laird, head of investment commented: “Whilst investment demand fell immediately prior to and after the referendum, the market has stabilised and we are pleased to report activity levels are as strong as they were pre-Brexit. Time will tell if these levels of activity will be maintained, however assets such as this one which offer high and stable income remain in high demand.”
He continued: “Raleigh Court presented an ideal investment opportunity to our client, offering good quality industrial accommodation within one of Teesside’s prime commercial estates, where there is a strong manufacturing market. The estate benefits from an excellent line up of occupiers, with two recent lettings and a lease renewal demonstrating strong tenant demand.”
The estate was sold by Simon Beanland of GVA Bilfinger on behalf of a Fund, he added: “We were pleased to complete on the sale of this industrial investment, which took place over both sides of the Brexit vote. The sale meets with the client’s aims to disinvest of smaller holdings within their portfolio.”
Raleigh Court comprises a terrace of eight modern units totalling 112,000 sq ft, with individual sizes ranging from 10,120 sq ft to 19,725 sq ft. Occupiers include Middlesbrough Council, Royal Mail Plc (triple unit) Owen Pugh Ltd, Park Electricals Ltd and Typhoon International.
There is one vacant unit of 17,000 sq ft, which our agency department has been instructed to market and is reported to be receiving strong occupational interest.
Our property and asset management team has also been instructed to manage the estate on a retained basis, whilst its building surveying team will be undertaking refurbishment works.
Angus White, head of asset management said: “We look forward to working with Leven Estates on a retained basis to maximise the value of the estate. As well as managing the day-to-day running of the properties and rent collection, we will also be pulling together an Asset Management plan, which we will seek to implement over the next two to three years. We are confident that this will give a clear strategy on the estate going forward.”
We have worked with Leven Estates on multiple transactions in the past, most recently announcing the acquisition of a Travelodge Hotel adjacent to the Metro Centre in Gateshead for £3.7 million, which completed earlier this year.