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Tuesday, April 29, 2023

Tritax Securities to invest 175m in Newcastle office buildings

Tritax Securities has secured 75 million of investment in seven weeks for its Tritax Quorum EZ Unit Trust, which will invest 175m into the construction of eight office buildings at Quorum Business Park, an Enterprise Zone four miles north of Newcastle City Centre.

The EZ Unit Trust attracted just over 800 private investors, each investing an average of 92,500 each to raise 75m for the offshore trust. The remaining 100m has come from a non-recourse bank loan.

The EZ Unit Trust is targeting an estimated post tax yield of 7%.

Mark Shaw, Director of Tritax Securities, comments: The speed at which our latest EZ Unit Trust became fully subscribed not only highlights the excellent investment opportunity, but also demonstrates the upstanding appetite among private investors for quality long-term commercial property investment.

"The long term success of the project will be achieved through creating an established, vibrant business park with a wide range of amenities and the highest quality environment for users of the park."

The Unit Trust will construct eight, three-storey air-conditioned office buildings, providing 451,198 sq ft (41,916 sq m)), ranging from 26,370 to 103,256 sq ft (2,450 to 9,592 sq m), with the use of 1,458 car parking spaces.

Detailed planning consent has been granted, with the development of the 17.86 acre site is due to start in April and rolled out over four years. The Developer has entered into a cashed-backed, non-occupational license to enter the properties for 17 years from legal completion.

The development process will be managed by Grantax Ltd, the joint venture between Tritax Securities and Grantside, which has been responsible for the development of the existing buildings at the Park.

Quorum Business Park is located adjacent to the A188 only four miles north east of Newcastle City Centre and has already established itself as one of the UK's prime business park locations. Current occupiers in the area include the Inland Revenue, IBM, BT, Nestle, Dataform, Romec, Ringtons OSG and Greggs Plc.