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Avison Young secure investment portfolio of business centres on Tees-side27 Aug 2021
The portfolio represents a 7.8% yield.
Avison Young acting on behalf of an undisclosed private investor has secured the purchase of The Tea Portfolio, a portfolio of business centres located within Middlesbrough and Stockton on Tees, providing 33,568sq.ft. of office accommodation and 57,281sq.ft. of industrial accommodation across three sites.
The properties include the CadCam Centre, Riverside Park, Middlesbrough, Queensway Business Centre, Cargo Fleet, Middlesbrough and Preston Farm Business Centre, Stockton on Tees.
The freehold multi let industrial and offices portfolio produces a net income of £349,442 with 97% of the industrial element let and 82.7% of the office accommodation fully let. The properties were acquired for the asking price of £3.65m representing a Net Initial Yield of 7.8% after all outgoings, including staff costs.
Simon Beanland, Principal at Avison Young, Newcastle comments. “These operational business centres provide flexible letting terms to a range of occupiers. The portfolio trades at a discount to the local rental tone and offers real potential for active asset management initiatives towards enhancing overall rental and capital values.”
Luke Symonds of NorthCap and joint agent LSH acted for the vendor.