Member Article

Hanro sells off two North East industrial development sites

Development firm Hanro has sold two North East industrial investments to Peak Income Partnership, an industrial property joint venture.

Newcastle-based HTA Real Estate acted on behalf of Peak Income to acquire the properties, located at Boldon Business Park, South Tyneside, and Balliol Business Park, Longbenton.

Russell Taylor, director at HTA Real Estate who advised on the acquisitions, said: “Demand for this type of industrial investment remains strong, particularly from local and regional investors who are looking for an attractive place to invest cash reserves, rather than having money on deposit in low interest accounts.”

The 19,000sqft unit at Boldon Business Park, which benefits from additional expansion land, is let to IDS (Immunodiagnostic Systems) on a 15 year lease from July 2015 at £90,000 per annum.

Whilst the second property, at Balliol Business Park ,is a 17,000sqft unit, let to NHS Direct for 15 years from January 2012 at a rent of £79,000. The investments both sold at a yield of 8%.

He continued: “As soon as we became aware of these properties coming to the market we identified Peak Income Partnership as a potential purchaser, knowing that it fitted their investment profile.

“The London-based property fund is attracted to the North East due to the higher yields on offer and the strong levels of occupier demand in established locations.”

Paul Henry of Wishtower, a JV partner, said: “Both properties are good, modern stock in established industrial locations where there is strong occupational demand for industrial premises.

’We were particularly attracted by the location of the Boldon site due to its close proximity to the main Nissan plant.“