Cushman & Wakefield has advised on the sale of an industrial warehouse on South West Industrial Estate in Peterlee to Buccleuch Property at a price of £3.475 million.
Reflecting a net initial yield of 7.93%, the 103,000 sq ft property encompasses a purpose-built modern manufacturing and warehouse facility.
An extensive unit, the building has a large warehousing space, two linked bays, an ancillary canteen and separate high spec office space spanning across two floors. It also includes an additional secure service yard and generous car parking area.
Located on Fiennes Road, the building is currently let to a pharmaceutical company. Occupying a prominent position on the industrial estate, it benefits from easy access to the A19, alongside excellent public transport links.
Buccleuch Property was advised by GVA on the purchase whilst Cushman & Wakefield acted on behalf of the vendors, the Enterprise Zone Trusts.
Gagan Jagpal of Cushman & Wakefield said: “We are delighted to have achieved this result for our client. This deal represents the continued success of the industrial investment market where a shortage of opportunities for occupiers is fuelling rental growth with property investors recognising the value that exists within the North East market.”
Alan Howie of Magarch, the asset manager on behalf of the trusts, added: “Having taken over as Trust Manager 18 months ago we are delighted to have effected this turnaround for our clients.”