A North East entrepreneur has acquired a prominent retail parade in Durham in a £3.55m deal.
Ward Investments, the company of Workwear Express founder Andrew Ward, who sold the business last year, has bought the units of 1 – 7 North Road in Durham's retail core, opposite the Riverwalk Shopping Centre. The deal with Halifax Pension Nominees Ltd was brokered by Knight Frank and means Ward Investments takes control of the 23,000 sqft parade that is currently home to brands including Greggs, Hays Travel, Sainsbury's and Bank of Scotland.
Knight Frank said the investment will generate a yield of 8.25% - an annual income of £311,000. It follows Ward Investment's acquisition of Merrington Industrial Estate in Spennymoor earlier this year.
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Dickon Wood, partner at Knight Frank, said: "These shops are a fantastic investment opportunity. Eighty-percent of the total income is secured to low risk tenants and we know that the Sainsbury’s unit trades particularly well. There is also potential to convert the upper floors for alternative use, subject to vacant possession and planning permission."
Mr Ward added: "I'm delighted to have acquired this property which is opposite one of our existing holdings and offers a number of asset management initiatives for us to improve the income."
Mr Ward sold Workwear Express to distribution and outsourcing giant Bunzl in 2021. Alongside building that business, the Durham entrepreneur developed an extensive property portfolio and he is an experienced developer and landlord. Ward Investments was set up to invest in a diverse range of properties including industrial, retail, office, leisure and student accommodation across the North East.
The firm has so far been involved in a number of schemes across the North East, including a £28m student residential project, The Three Tuns, among others. The North Road units host one convenience food store, five retail units and a kiosk and are part of a wider shopping area. The vendors in this deal were advised by Green and Partners.
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