A PROPERTY group has made a £600,000 profit in only ten months after selling an industrial unit in the region.
Kenmore Property Group has sold the Rayovac industrial unit, in Stephenson Road, Washington, Wearside.
The group was advised to buy the factory, which is let to Rayovac Europe, a manufacturer of battery and lighting products, for £2m.
Commercial property consultants King Sturge advised on the purchase and undertook a rent review which increased the rent by £20,000 a year.
Dickon Wood, head of investment at King Sturge, said: "Washington is a popular location for manufacturing and industry, and has benefited enormously from the business that Nissan has brought to the area.
"We acquired the building knowing the rent was undervalued and, having done the review, have also been able to take advantage of the yield compression in the market place.
"Having secured an uplift in rent, the property was then selectively marketed and achieved four offers, culminating in a sale to Threadneedle Property Investments in September 2005 at a price of £2,655,000."
Published: 20/12/2005
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article