14 October 2015
Telereal Trillium continues its investment drive to acquire assets with value-add potential with the purchase of Ashmore and Progress House, two adjacent office buildings in Stockton-on-Tees, and an industrial premises on Manston Business Park.
- Ashmore and Progress House are located in Stockton-on-Tees on the Teesdale Business Park. The office buildings were acquired from a pension fund client of Aberdeen Asset Management for £3.25m (10.78% NIY). The buildings are fully let to the strong covenants of Siemens PLC and Johnson Matthey PLC. The site benefits from its close proximity to Infinity Bridge, which will provide a direct link into the new Northshore Development. The seller was advised by Knight Frank and Telereal Trillium by Bilfinger GVA.
- Invicta Way, Manston Business Park was purchased as part of a company acquisition. The unit is fully let to Cummins Ltd, one of the largest designers, manufacturers and distributors of diesel engines in the world. Cummins Ltd have been located on Manston Business Park since 1998 when they purchased a production unit which is immediately adjacent to the subject premises. They have a further building used for storage, which is leased and connects to their freehold unit. Strutt & Parker advised the vendors, whilst Allsop advised Telereal Trillium on this deal.
Paul Munday, Associate Director at Telereal Trillium said: “We are pleased to acquire further investment assets to our portfolio that are fully let to well-established covenants. The office market on Teesdale Business Park is currently strong with low vacancy rates, a large number of blue chip occupiers and evidence of increasing rental growth. The letting of Progress House to Johnson Matthey in early 2015 is testament that the buildings are well positioned to attract high quality occupiers.”
He adds: “The industrial unit on Manston Business Park offers high quality accommodation and it is our view that the tenant is established in this location being long term occupiers on the Park and having recently being able to consolidate complimenting operations close together, improving their business efficiencies. We are also acutely aware of the lack of supply for similar units of this size and quality within the region, and we anticipate that the asset will perform well for the business.”
Telereal Trillium has invested over £200m in acquisitions over the last couple of years.