British Steel sells in Darlington

Pension fund sells Darlington North retail park

British Steel pension fund has disposed of Darlington North retail park in Darlington through Avison Young. The freehold investment was sold to a private wealth fund for £9.915m, reflecting a net initial yield of 6.20 per cent, ahead of the asking terms.

The 41,993-sq ft retail warehouse park, which opened in July 2016, is fully let to Aldi, Iceland, Poundland, Jollyes, Card Factory, Barnardo’s and F&B operators Greggs, Subway and KFC with a WAULT of 11.7 years to lease expiry.

The property provides an annual rental income of £655,527pa and the Aldi lease benefits from five-yearly rent reviews, linked to RPI, with collars and caps of 1.0 and 3.0 per cent.

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