October 24, 2015
Cobalt Business Park,
North Tyneside
Type of deal Investment
Vendor Indigo Real Estate
Purchaser Maya Capital
Size 93,571 sq ft
Price £13.08m
Chosen by Dickon Wood, head of capital markets, Knight Frank
This summer Indigo Real Estate sold Cobalt 15 to Maya Capital for around £13m, giving it a return of approaching 100% on an investment made just two years ago – a key reason for making it my choice of top deal.
Indigo acquired Cobalt 15 for £7.9m in July 2013. It is occupied by the Department for Work and Pensions until 2018 on a rental of £1,384,851 pa – equating to £14.76 per sq ft. The property was bought from a distressed seller in difficult market conditions. Indigo, however, had the foresight to see an improvement in the occupational market and bought quality space let to a AAA covenant, giving it a 16% running yield.
Maya’s European backing demonstrates a further trend in the market. Out of town has seen historically high vacancy levels but is now appealing to foreign investors who are happy to take on that risk because the yields are a bit higher.
Darlington North Retail Park, Albert Road, Darlington
Type of deal Investment
Vendor Opus North
Purchaser British Steel Pension Fund
Tenants Aldi, Poundland and Iceland, among others
Size 42,000 sq ft on four acres
Price Undisclosed
Chosen by Adam Procter, director, Griffiths Procter
I have chosen this significant deal because I believe it underlines both the attraction of a multilet retail park with national names and the renaissance of interest in the North East as an investment hotspot.
Developer Opus North worked hard – from assembling the land, which was under several different ownerships, to securing a raft of popular and successful retail occupiers. The fact that high-profile names such as Aldi, Poundland and Iceland have chosen to open at Darlington North is a massive endorsement of the town as a retail location. The subsequent multi-million-pound sale to the British Steel Pension Fund was a tribute to Opus North’s work.
This scheme, which will create more than 150 jobs, is also a good example of co-operation between the public and private sectors – Opus worked closely with planners at Darlington borough council to boost the economy of the town.
1 Central Parkway, Newcastle
Type of deal Leasing
Landlord Network Rail
Tenant Durham Care Line
Size 10,000 sq ft
Terms Around £11 per sq ft
Chosen by Neil Osborne, director of agency and investment, Lambert Smith Hampton
As well as being one of the biggest recent office transactions in Newcastle, this was an unusual deal as floorplates of this size are fairly hard to come by in the city centre, especially in listed properties and without paying premium rents. Longstanding North East occupier Durham Care Line was looking to move and seeking around 10,000 sq ft, crucially all on one floor. Location was key for the tenant, which wanted to remain in the Newcastle area and provide easy access for those using public transport.
Landlord Network Rail was proactive in creating a new entrance at 1 Central Parkway and installing a lift. While rents are beginning to increase in Newcastle for grade-A space, Durham Care Line was also able to secure a 10-year lease at a starting rent of around £11 per sq ft, so this deal represented significant value for a building of this size and quality in Newcastle city centre.
Author:Estates Gazette
Link: http://www.egi.co.uk/news/832150/?keyword=opusnorth