Newton Aycliffe industrial facility snapped up by Manchester property firm
Langton Business Centre in Newton Aycliffe has been acquired by the MCR Property Group in a £1.85m deal.
Commercial property specialist Naylors sold the industrial facility to the Manchester-based investment and development company, on behalf of South Street Capital.
Langton Business Centre sits on a 10-acre site and was originally built in the 1970s. The property has subsequently been subdivided into individual units and has over a dozen tenants in occupation including Gestamp Tallent and Husqvarna UK.
Since 2014, the investment had been in the hands of South Street Capital, a London-based provider of asset management and multi-family office services for private and institutional clients, on behalf of an overseas investor.
With a total area of 188,000 sqft Langton Business Centre carries a rental income of over £257,000 per annum.
Chris Donabie, director at Naylors said: “Langton Business Centre has proved to be a sought after investment and we are pleased to have completed a very successful sale.
“The investment offers a number of opportunities to improve the income proﬁle, such as letting the vacant accommodation and re-gearing leases.
“There are also 2.4 acres of development land which offers further scope for increasing the returns.”
James Harrison-Topham, investment director at South Street Capital UK, added: ’As part of our active management strategy we were able to significantly increase the rental income of Langton Business Centre.
“There are a number of angles for further enhancement of the asset, which the new owners can pursue.”