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Newcastle, 19 June 2013 - Jones Lang LaSalle has recently completed the successful sale of the 3663 distribution unit on Green Lane, Felling By-Pass in Gateshead.
The recently refurbished property is let to the very strong covenant of BFS Group Limited (trading as 3663) on a full repairing and insuring lease which expires in August 2019.
The property, which was built in the 1980s extends to 69,222 sq ft is BFS Group’s main distribution depot in the North East of England. The firm is a large foodservice and catering equipment distributor which operates a fleet of over 800 temperature-controlled delivery vehicles out of 23 depots and four regional distribution centres. They have been in occupation for over 28 years .
The property is currently let at £180,000 per annum, which equates to a low rent of £2.61 per sq ft. The property was acquired in cash by a private investor at a price of £1,600,000 which reflects a net initial yield of 10.60%.
Dickon Wood of Jones Lang LaSalle led the marketing process and commented: “Although this unit was slightly dated, the property had recently been refurbished and offers a high profile site on one of the main arterial routes into Newcastle city centre.
“It is a perfect investment opportunity for a private investor, as it provides a secure income stream at an attractive double digit yield .There is a strong appetite from investors at present but it is always difficult to find a common ground between buyers and sellers as values being achieved today are still below the levels of the mid 2000s and no one wants to crystalize that loss."
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