Knight Frank Newcastle has sold 99,310 sq. ft. of industrial property on Foxcover Distribution Park in Seaham, on behalf of Metnor Property Group – in a deal worth £5m.
An unnamed buyer has acquired Units 3 and 4, which make-up 55% of the land at Foxcover.
Knight Frank originally advised the seller, Metnor Group, on the purchase of the properties around four years ago.
The properties are let to Sofaworks (trading as Sofology and owned by DFS) and Lightweight Containers, a Netherlands headquartered business, which manufactures the innovative KeyKeg system for the drinks industry.
The units have sold at a price reflecting a net initial yield of 8% and a capital value of £50.35 per sq. ft. based on a weighted average unexpired lease term of 6.65 years to expiry.
Knight Frank Newcastle’s Capital Markets partner Dougie Cranston said: “It has been great to be involved with Metnor Property Group from the original acquisition through to the recent disposal. The transaction demonstrates the continued national appetite for value-add industrial investments in the North East.”
Tom Rankin, director at Metnor Group adds: “After successfully securing Lightweight Containers for Unit 3 and Sofology’s further commitment to Unit 4, it was a logical time to dispose of the assets. We had worked through our asset management initiative, which further emphasises the strength of the regional occupational industrial market.”
Real estate lawyers at North East based commercial law firm, Muckle LLP, advised Metnor Property Group on all the legal aspects of the deal.
Will McKay, Muckle LLP partner, said: “We have worked closely with Metnor Group throughout this project, having advised on their commercial property legal needs for many years, and I’m delighted that we’ve been able to help Tom and the team achieve a solid return on investment.”
Knight Frank LLP is the leading independent global property consultancy. Its Newcastle office has a 50-strong team who provide property management, capital markets, office and industrial buildings agency, building consultancy, ratings and lease advisory and property valuations. The team is very proactive in the market, using its unrivalled access to the latest markets research to ‘know things first’. They are a friendly team, with personality, that deliver a personal service.