Avison Young has disposed of Darlington North Retail Park in Darlington on behalf of British Steel Pension Fund. The freehold interest was sold to a private wealth fund for £9.915 million, reflecting a net initial yield of 6.20%, ahead of the asking terms.
The recently developed retail warehouse park, which opened in July 2016, extends to 41,993 sq ft GIA and is fully let to Aldi, Iceland, Poundland, Jollyes, Card Factory, Barnardo’s and A3 operators Greggs, Subway and KFC with a WAULT of circa 11.7 years to lease expiry (10.1 years including tenant break options). The property provides an annual rental income of £655,527 per annum and the Aldi lease benefits from 5 yearly rent reviews, linked to RPI, with collars and caps of 1.0% and 3.0%.
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