Builders' Merchants News

Commercial property recovers

Published:  02 December, 2010

TYNE-AND-WEAR: There has been steady demand for prime industrial and office assets across the UK in the last two years, with the North East performing ahead of the market in recent months.

A recent bidding war saw the £6.9m price for prime North East industrial estate being exceeded.

The 177 000sqft Kingsway Industrial estate on the southern end of Team Valley industrial estate was put up for sale last month by the Legal & General pension fund which has owned the site for 20 years.

The site at Eleventh Avenue, comprises 24 units varying in size from 3000sqft to 10 000sqft, with Screwfix, Jewson, and Wolseley among the tenants.

It currently provides a rental income of over £600 000 a year, with further potential annual earnings as four units are currently void.