Industrial unit snapped up for £2.3m

Apr 30 2008 by Graeme King, The Journal

AN INDUSTRIAL unit on the Team Valley Trading Estate in Gateshead has been sold for £2.3m.

The unit at 401 Princesway Central has gone to private investors through an auction conducted by Jones Lang Lasalle. The price reflected a net initial yield of 7.53%.

The whole of the property is sublet to Worthington Armstrong UK Ltd, from Revolutionary Adhesive Materials, until 2016. Richard Auterac, director and auctioneer at Jones Lang Lasalle, said the auction had seen investors sticking to property they were familiar with.

He said: “We noticed a shift to sector specific asset buying and competitive bidding on trophy properties.

“People are clearly sticking to what they know and that is the long term profitability of commercial real estate as a real alternative to other investment markets. Our positive results reflect the fact that liquidity remains in the auction room and investors see bricks and mortar a safe haven.”

Team Valley is still one of the greatest generators of wealth for the North-East. With more than 7 million sqft, the area is estimated to be home to 24,000 employees and 740 businesses and is still the largest industrial estate in the UK in single freehold ownership.