(Sharecast News) - Industrial property investor Hansteen has bought a portfolio of seven multi-let, urban industrial estates on Newton Aycliffe Industrial Estate in County Durham from M&G for £12m.
The purchase price reflects a high net initial yield of 8.5% and a low capital value of £38 per square foot.
The portfolio comprises 53 units totalling 341,620 sq ft, with contracted rental income of £1.09m a year. The units are let to 40 tenants, which are a mix of local, regional and national companies, on 45 leases, providing "a diverse and robust" income stream.
The properties are within the wider Aycliffe Business Park, the second largest industrial park in the north east, comprising around 980 acres, 500 businesses and employing more than 10,000 people. The park is the biggest single employment area in County Durham and forms a key part of the north east economy, Hansteen said.
Derek Heathwood, UK property director at Hansteen, said: "This purchase fits our acquisition criteria perfectly, being significantly below replacement cost, with low rents capable of further growth, vacant units and in an area where we have significant holdings and a regional team that can add real value."
At 1520 GMT, the shares were down 0.4% at 102p.
15 May 2015 15:15