A portion of one of the North East's largest retail areas has gone on the market with investors already said to have shown interest.
Commercial property firm UK Land Estates is looking for offers over £6.77m for Portrack Retail Park, off Portrack Lane in Stockton. The six units, offering 65,235 sqft of space, are currently home to brands such as One Gym, Michael O'Connor Furniture, kitchens specialist Howdens, United Carpets and Tile Mountain.
Gross rent across the location is £505,950 per year, reflecting an average of £8 per square foot. Joint agents Knight Frank and JLL say a purchase around the asking price would reflect a net yield of 7% and a capital value of £103.86 per square foot.
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David Gibbs of UK Land Estates said: "UK Land Estates has invested heavily in Portrack Retail Park and have been hugely successful in securing lettings to a strong line up of tenants from the trade, retail and leisure sectors, creating a highly secure and diverse Investment."
Portrack Retail Park is right at the centre of the wider Portrack Lane warehouse retail and trade counter cluster, and sits opposite stores including The Range, B&M, Smyths Toys and Food Warehouse. Nearby there are national names such as Halfords, Screwfix and Toolstation.
A prospectus for the location, which is connected via Holme House Road, shows the six units were built in 1995 and include customer parking at the front with service areas at the rear. Leases with the tenants have end dates ranging from 2030 to 2038 with an average 8.4 years to break.
The joint agents point to a robust market in the retail warehouse space with prime yields currently standing at about 5.2%. Dickon Wood, partner at Knight Frank said: "Portrack Retail Park provides an excellent opportunity to acquire a highly prominent retail warehouse and trade counter investment secured to a leading tenant line up, underpinned by a strong occupational market."
UK Land Estates, which is one of the region's largest commercial property investors and developers, also owns the nearby North Tees Industrial Estate in addition to large industrial parks around the region.
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