A North East industrial park has been snapped up in a £7.6m deal, demonstrating strong interest in the North East’s industrial sector.
Pallion Industrial Estate has been sold to M7 Real Estate (Mileway) on behalf of UK Land Estates in the multimillion-pound deal, brokered by Knight Frank in Newcastle.
Knight Frank says the deal shows how investor demand for regional, multi-let industrial estates remains strong despite the pandemic.
Pallion is a 146,340sq ft strategically located asset, with tenants including Tool Station, Sunderland AFC and Saint Gobain, and will provide the purchaser with a yield of 6.34%.
The estate extends to 17 modern industrial units and produces an annual rent of £513,672 per annum.
A lack of modern industrial supply in the region and the ongoing regeneration of the Sunderland area means Pallion Industrial Estate is ripe to deliver high quality, contemporary industrial space for the North East market.
UK Land Estates has previously sold vacant land in the area to Sunderland City Council, which is subsequently being developed.
Partner at Knight Frank Newcastle, Dickon Wood, who sold Pallion Industrial Estate on behalf of UK Land Estates, said: “We are delighted to have assisted UK Land Estates in this successful sale of an asset class which is in short supply but high demand at present.
“The yield is amongst the sharpest achieved in Sunderland.
“The underlying tenant demand for industrial premises is why so many investors are targeting the industrial sector at present.”
Phil Moorin, investment director at UK Land Estates, said: “This strategic sale has realised funds that will be used to invest in our estates across the North East, and new projects in the region.
“We’re continually reviewing and investing in our portfolio – which is the largest of any commercial landlord in the North East – to make our estates the best places to work and do business.
“Our focus is on providing properties that meet the changing demands of the market and supporting the growth potential in the region.”
