Hansteen buys County Durham portfolio

Hansteen has bought seven multi-let urban industrial estates in County Durham from M&G. The portfolio, on Newton Aycliffe Industrial Estate, was acquired for £12m. This represented an 8.5% net initial yield and capital value of £38 per sq ft. There are 53 properties in the group totalling 341,620 sq ft, with individual units ranging in size from 820 sq ft to 32,648 sq ft. Contracted rental income was £1,094,000 per annum (£3.55 per sq ft) with a total current ERV of £1,272,000 per annum (£3.72 per sq ft). The units are let to 40 tenants on 45 leases. Around 9.4% of the portfolio (32,942 sq ft) remains vacant. The properties are within the wider Aycliffe Business Park, the second largest industrial park in the North East. Derek Heathwood, UK property director at Hansteen, said: “This purchase fits our acquisition criteria perfectly, being significantly below replacement cost, with low rents capable of further growth, vacant units and in an area where we have significant holdings and a regional team that can add real value.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette