| the north east
SPATE OF DEALS FOR HTA REAL ESTATE AS INDUSTRIAL MARKET REMAINS STRONG
ewcastle-based industrial property specialist, HTA Real Estate, has revealed it secured deals on over 1.5m sq.ft of industrial space across the North East in 2015, a 20% increase on its performance in 2014.
N According to results recorded in a
survey by all of the region’s industrial agents, HTA negotiated over 50% of last year’s North East industrial deals over 50,000 sq.ft.
The firm accrued 31 deals over the course of 2015 including the acquisition of a 226,000 sq.ft unit on behalf of Lanchester Wines in Gateshead, the letting of a 53,000 sq.ft unit to End Retail at New York Industrial Estate, North Tyneside and the North East’s biggest industrial letting of the year, 263,000 sq.ft to packaging company Coveris Rigid at Drum Industrial Estate, Chester-Le-Street.
The firm, which was established by Simon Hill, Nick Atkinson and Russell Taylor - all formerly directors within national property companies, say the increase in deals is partly down to the strength of the industrial market in the region.
A letting at the brand new Portobello Trade Park by Ravensworth Developments.
Simon Hill of HTA Real Estate said: “We have transacted over 3 million sq.ft since the business was first established over two years ago and we are very proud of what we have achieved in this time. As we have become more established in the market we have seen an increase in deals, however this can also be attributed to sustained
confidence in the industrial sector. Over the past year we have experienced a particular increase in demand for regional packaging and distributions centres due to an increase in e-tailing, a trend we envisage will continue throughout the remainder of the year as retailers recover and
restructure. Nissan has also continued to play a major role in the market.”
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In one of its last deals of 2015 HTA acquired a 100,000 sq.ft warehouse at Cherry Blossom Way, Sunderland on behalf of a well-known online retail giant, which will be used as a regional parcel distribution hub. They also let a 50,000 sq.ft unit at Cathedral Park, Durham to parcel delivery company DPD Group. Nick Atkinson of HTA said: “Whilst a shortage of industrial stock continues to be a problem throughout the region we are delighted to announce that we currently have 400,000 sq.ft in solicitor’s hands. Demand remains strong in hotspots close to the A1 and A19, particularly Washington where Nissan continues to impact the market. We are also experiencing a shift in demand from leasehold to freehold as companies look to acquire their own premises thanks to funding being made more readily available.”
Despite agents reporting a high level of demand for industrial stock across all size bands there still remains a severe lack of new speculative development in the region. However HTA’s development specialist Russell Taylor remains positive that the North East will see some activity before the end of the year.
He said: “Due to strong rental growth, improved yields and an increasingly stable market developers are now starting to explore the viability of new schemes, which they hadn’t previously been able to contemplate. Whilst build costs still remain an issue we are confident we will see some new speculative development emerging before the end of the year.”
COMMERCIAL PROPERTY MONTHLY 2016
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