Knight Frank Newcastle has disposed of two North East multi-let industrial estates in deals worth a total of £9.25m.

The sales, completed by Knight Frank’s Capital Markets team, are Princes Park – arguably the most prime piece of industrial property on Team Valley, Gateshead, – and strategically located Sunderland industrial estate, Leechmere.

The Princes Park property is 98,000 sq. ft. and is let to a strong tenant line-up including Pilkington UK, TDX and Thermodynamix. The investment has been acquired by Shell Pensions Trust for £7.5m, reflecting a net initial yield of 6.9%.

Dickon Wood, partner at Knight Frank, said: “The multi-let, industrial market is the primary target sector for so many of the UK Pension Funds.

“Princes Park is a prime institutional estate in the best location in the North East on Team Valley Trading Estate. We achieved a great result which was down to the quality of the estate and reversionary rental potential moving forward.”

Units 1-12, Leechmere Industrial Estate in Sunderland is a popular 50,000 sq. ft. estate with a core income of trade occupiers including Wolseley and Howdens.

Leechmere was acquired by M7 Real Estate Investment Partners for £1.75m, reflecting a net initial yield of 7.48%.

Dougie Cranston, partner at Knight Frank Newcastle, managed the sale of Leechmere Industrial Estate. He comments: “There was good appetite for Leechmere underpinned by the long term security on offer to two prime trade occupiers.

“In advance of marketing, we completed several strategic asset management initiatives, alongside our lease consultancy team, to drive the best possible returns for our client.”

Knight Frank argues that both transactions provide evidence of the ongoing appetite from UK funds and property companies for good quality, multi let industrial assets. The yield differential between the North East and other competing regional UK centres continues to drive investment into the North East.

M7 were advised by Cushman & Wakefield, Newcastle.

Shell Pensions Trust were advised by Naylors Chartered Surveyors