Investment Disposal of Lingfield Point, Darlington
Advised Clearbell Capital on the disposal of this 85 acre business park to Frogmore for £44,000,000, reflecting 8.4% NIY. We advised on the original off market purchase for £23,000,000 reflecting 11% NIY in 2014. Clearbell achieved >2x equity multiplier and >30% IRR.
• Lingfield Point is one of the premier business locations in the Tees Valley region.
• Provides 1,350,000 sq ft of stunning award winning office and warehouse accommodation,
• 30 acres immediately available for redevelopment.
• The site has outline consent for a further 946 homes along with commercial, community and amenity uses.
• The property is a key component of the north east economy, with 65 tenants and 3,000 employees.
• 77% of the total income is derived from FTSE-listed companies or government bodies including AMEC Foster Wheeler, Student Loans Company and Capita with a WAULT of 3.9 years.
• Total income of £3,940,000 per annum, reflecting low overall rent of £3.45 psf.
• ERV of £5,315,000 per annum, reflecting £4.00 per sq ft overall.
• Vacancy totals 201,487 sq ft (15%).
• Complex asset where Montagu Evan’s investment, planning and residential feasibility inputs where critical.