Performance 28, Drum Industrial Estate, Birtley — Sold | North East Industrial Investment Completes Off-Market

Industrial | 4,289 sq ft | Units 21, First Avenue, Drum Industrial Estate, Birtley, DH2 1AG

Delta Capital Property Investment is pleased to announce the successful off-market sale of Unit 21, First Avenue, Drum Industrial Estate, Birtley, which completed in June 2026 at the asking price of £350,000.

The property is a terraced industrial unit of steel portal frame construction, comprehensively refurbished in 2023 to a high standard. Extending to 4,289 sq ft in total, the unit comprises 3,434 sq ft at ground floor level with an 855 sq ft mezzanine, and is predominantly used for vehicle servicing, repairs, maintenance and performance upgrades. The property is held freehold.

Drum Industrial Estate occupies a highly strategic location in Birtley, situated just off the A1(M) at Junction 63, providing excellent connectivity to Newcastle upon Tyne, Durham City and Sunderland. Chester-le-Street Railway Station lies approximately two miles away, and Newcastle International Airport is within 12 miles. The estate is home to a diverse range of occupiers including Komatsu, DX Network Services, Parcelforce, the Co-op distribution centre and Altrad Group.

The property was sold with the benefit of a new five-year full repairing and insuring lease to Performance 28 Limited, a specialist performance car sales and upgrades business, commencing 10th December 2025 and expiring 9th December 2030, at a passing rent of £24,000 per annum. An estate service charge of approximately £360 per annum is fully recoverable from the tenant. According to CreditSafe, Performance 28 Limited holds a risk score of Low Risk and an international score of Low Risk.

The sale reflects a net initial yield of 6.61% based on purchasers' costs of 3.80%, representing a capital value of £81.60 psf.

"This transaction is a good example of the continued investor appetite we're seeing for well-let industrial assets in the North East. The fundamentals of this market remain very strong with constrained supply, robust occupier demand and consistent rental growth and we're finding that quality stock, particularly where it has been recently refurbished and let on new leases, is attracting serious interest. We expect that trend to continue."

Daniel Capobasso MRICS, Managing Director, Delta Capital Property Investment

The sale was handled off-market by Delta Capital Property Investment. For further information on this transaction or to discuss similar investment opportunities across the North East, please get in touch.

Daniel Capobasso MRICS

Managing Director

Delta Capital Property Investment

Mob: 07968 618 948

Email: dc@deltacap.co.uk

Daniel Capobasso is a RICS-qualified commercial property investment advisor and Managing Director of Delta Capital Property Investment, specialising in investment transactions and asset management across the North East of England.