Acting as sole investment agent, Naylors placed Langton Business Centre in Newton Aycliffe on the market with an asking price of £1.85m, on behalf of South Street Capital.
A substantial industrial facility with offices and development land, Langton Business Centre sits on a 10-acre site and was originally built in the 1970s. The property has subsequently been subdivided into individual units and has over a dozen tenants in occupation including Gestamp Tallent and Husqvarna UK.
Since 2014, the investment had been in the hands of South Street Capital, a London-based provider of asset management and multi-family office services for private and institutional clients, on behalf of an overseas investor.
With a total area of 188,000 sqft Langton Business Centre carries a rental income of over £257,000 per annum.
Chris Donabie, director at Naylors said: “Langton Business Centre has proved to be a sought after investment and we are pleased to have completed a very successful sale. The investment offers a number of opportunities to improve the income proﬁle, such as letting the vacant accommodation and re-gearing leases.
“There are also 2.4 acres of development land which offers further scope for increasing the returns.”
James Harrison-Topham, investment director at South Street Capital UK said: ‘As part of our active management strategy we were able to significantly increase the rental income of Langton Business Centre. There are a number of angles for further enhancement of the asset, which the new owners can pursue.”
Manchester-based MCR Property Group, which was established in 1989, has in recent years moved from retaining long-term assets to trading, specifically concentrating on securing opportunities where they can add value.