Clearbell sells Lingfield Point to Frogmore for £44m

1st August 2018

Lingfield Point is an 85-acre business park in the heart of the North East

Clearbell Capital today announces the sale of Lingfield Point, an 85-acre business park in the North East, to Frogmore, on behalf of a fund it manages.

Lingfield Point is a mixed-use business park, located in Darlington, and is recognised as one of the North East’s most prestigious property developments. The site incorporates office, industrial and residential space. The site was originally a wool mill factory and has been central to a two-decade long regeneration project in the area.

Lingfield Point is home to many well-known businesses, including the Student Loans Company, and Capita, the outsourcing firm, which leases both office and warehousing space. Lingfield Point is also home to Amec Foster Wheeler.

Lingfield Point was acquired in November 2014 for £23.7m, pursuing a cash-on-cash investment strategy. As part of this strategy, a series of lettings and asset management initiatives to drive income were undertaken. Initiatives have included:

  • Significant capex to introduce new infrastructure across the site
  • A 42,000 sq ft office letting and a 350,000 sq ft warehouse letting to Capita
  • A lease re-gear for the Student Loans Company
  • A new ­5-year lease with Four Seasons Health Care.

Dominic Moore, Head of Asset Management & ESG Director at Clearbell, said:

“Our team has a breadth of knowledge of the UK market, enabling us to identify investment opportunities UK-wide. The business community in the North East is thriving and Lingfield Point is perfectly positioned to benefit from this buzz. There has been sustained tenant demand over the past few years highlighting confidence in the North East as a place to do business.

“As businesses continue to demand more from their offices Lingfield Point is ushering in a new generation of modern workspaces. We’re proud to have been involved in the development of such a historic site.”

Patrick Smith, Head of Acquisitions at Frogmore, said:

“This is an exciting opportunity for Frogmore to reinvigorate the award-winning site, engage with the community and provide further modern, relevant accommodation through our asset management expertise.

Tees Valley is a well-connected area to which businesses are attracted and we look forward to providing innovative real estate solutions for their requirements. Lingfield Point provides a strong cash on cash return of over 10% with significant potential to add value as well as providing both sector and geographical diversification for our investors.”

Lingfield Point is home to c. 3,000 staff, who benefit from a range of facilities including an on-site nursery; concierge services and on-site café.

Montagu Evans acted for Clearbell and Everton Phillips acted for Frogmore.

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