The property is a nine-unit industrial warehouse development of 71,700 sq.ft. and is located around five miles north of Newcastle City Centre. Litton acquired the property in 2003 from the administrators of Brunswick Shoe Warehouse and undertook a major refurbishment splitting the property into individual units ranging in size from 3,800 sq.ft. to 19,480 sq.ft. The property was 90% occupied with a further three acres of land available for development. Litton recently let a 19,186 sq.ft. unit to Alliance Healthcare, the medical and healthcare distributor. Following this the decision was taken to put the property on the market and take advantage of the strong current demand for industrial investments.
Litton’s decision to sell the property was also prompted by Brunswick Park’s location which is outside the group’s core geographical area and also to provide funds for reinvestment in its current development pipeline. Litton believes it can achieve a higher return on the cash released by recycling it into its current development projects.
Litton is shortly planning to commence construction of a Premier Inn hotel at Riverside Business Park in Derbyshire which will be the next phase of a £25m regeneration scheme. The company also has an application running for 65,000 sq.ft. of offices over three buildings adjoining East Midlands Airport which it wishes to build out and retain.
A spokesman for Litton commented ‘We do not generally trade our income portfolio and are long term investor-managers. However, we are very pleased to have concluded this sale as it releases funds for re-investment in other projects we are working on where we believe we can achieve higher returns. The property was also not in our core market area and it therefore made sense for us to exit at the right point.’
Gosschalks Solicitors and Naylors Chartered Surveyors acted on behalf of Litton Property Group. Freeths and Koopmans advised Changerygate and JR Capital.
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