Newcastle-based HTA Real Estate has acquired two industrial investments on behalf of Peak Income Partnership, an industrial property joint venture.
The properties, which are located at Boldon Business Park, South Tyneside and Balliol Business Park, Longbenton, were sold by North East development and investment company, Hanro.
The 19,000sqft unit at Boldon Business Park, which benefits from additional expansion land, is let to IDS (Immunodiagnostic Systems) on a 15 year lease from July 2015 at £90,000 per annum.
The second property at Balliol Business Park is a 17,000sqft unit, which is let to NHS Direct for 15 years from January 2012 at a rent of £79,000. The investments both sold at a yield of 8%.
Russell Taylor, director at HTA Real Estate who advised on the acquisitions said: Demand for this type of industrial investment remains strong, particularly from local and regional investors who are looking for an attractive place to invest cash reserves, rather than having money on deposit in low interest accounts.
As soon as we became aware of these properties coming to the market we identified Peak Income Partnership as a potential purchaser, knowing that it fitted their investment profile. The London-based property fund is attracted to the North East due to the higher yields on offer and the strong levels of occupier demand in established locations.
Paul Henry of Wishtower, a JV partner, said: Both properties are good, modern stock in established industrial locations where there is strong occupational demand for industrial premises. We were particularly attracted by the location of the Boldon site due to its close proximity to the main Nissan plant.
HTA Real Estate, a specialist industrial and logistics property agency, secured deals on over 1.5m sqft of industrial space in the North East last year. The firm has recently completed a number of deals including the sale of a 54,000sqft unit on Merlin Way in North Tyneside on behalf of Burren Investments, the sale of a 37,000sqft unit on Scotswood Road in Newcastle to JJ Foods and the sale of a 20,000sqft unit in Darlington on behalf of Subsea Innovation.