Newspaper article The Journal (Newcastle, England)

Heaton Site Sale Makes PS44.5m; DEALS

Newspaper article The Journal (Newcastle, England)

Heaton Site Sale Makes PS44.5m; DEALS

Article excerpt

Byline: COREENA FORD coreena.ford@ncjmedia.co.uk

PROPERTY group Hanro has sold a plot containing a Newcastle car dealership and supermarket to the NFU Mutual Insurance Society for PS44.5m.

The property group, which is responsible for a multi-million pound portfolio around Newcastle city centre and beyond, has sold the leasehold of the 10.4-acre site in Heaton - home to Tyneside's first Sainsbury's superstore and a Peugeot dealership.

The deal, leaving 26.2 years remaining on the supermarket lease and 11 years on the motor dealership, represents a blended initial yield of 5%, as well as one of the biggest property deals in the North East this year.

Hanro managing director Adam Serfontein welcomed the sale and said the proceeds will be reinvested.

He said: "From time to time property companies need to revitalise their stock.

"Part of our success over the last 20 years has been in buying investments to which we can add value through redevelopment, refurbishment, renegotiating leases and working closely with occupiers.

"Once the value has been added it is appropriate to consider recycling these investment. We were very happy with the outcome, and there's still scope for growth there.

"We are very proud of what has been achieved, particularly in attracting Sainsbury to their first superstore in the region.

"I think that the impact of Lidl, Aldi and other discounters, whilst interesting, the response that is coming from the big boys will be a lot more interesting."

Hanro has been involved in the site - once the site of the old Cremona toffee factory - for more than 25 years.

The plot was originally snapped up by Minories Group, the company from which Hanro emerged when Minories sold to Appleyard in 1988.

Minories Garages had bought the land to build a motor dealership but some of the land was surplus to requirement, prompting the construction of a Presto supermarket. Presto later became a Safeway, which in turn became Morrisons. …

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