HTA Real Estate have advised AAH Pharmaceuticals on the sale and leaseback disposal of their premises on Lobley Hill Road, Team Valley, Gateshead. The asset comprises a detached, securely let distribution investment let to AAH for 15 years at a rent of £135,000 per annum. The 22,555 ft² unit sits on a site of almost 2 acres and has been home to AAH for in excess of 25 years. This is a core holding for the business and benefits from excellent access to the A1(M) motorway network. The investment was on the market at offers in excess of £1.75m which reflects a net initial yield of 7.26%.
Douglas Cranston, Director of Capital Markets at HTA Real Estate commented, 'It is rare to have the opportunity to sell a freehold site on the fringe of Team Valley Trading Estate, particularly with a secure income stream of 15 years. Due to the strong tenant and good residual value underpinning of the site, we managed to secure a disposal in advance of asking. The investment is a good example of an asset that appeals to private individuals, Property Companies, Family Trust money and syndicated investors.'
