Overseas investor hones in on £6m North East manufacturing HQ space

Knight Frank’s Capital Markets team has disposed of a prime North East industrial property in excess of the £6.23m asking price.

This is 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 5.5 per cent.

The modern property has reportedly 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, said: “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 per cent 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.

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