A manufacturing unit in North Shields has been bought by an overseas investor in a multi-million pound deal.
The 72,000sq ft tenanted unit on New York Industrial Park has been sold for £6.23m – in excess of the asking price – by London-based property investor Hansteen.
The modern property was refurbished and modernised before Knight Frank’s capital markets team secured a new letting to an international packaging manufacturer on a 14-year lease.
Douglas Cranston, partner at Knight Frank, 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 ten 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.”
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.”