A Gateshead-based property company has acquired two industrial units in a sale and leaseback deal with a North Tyneside electronics manufacturer.

In a £1.175m deal, MCM Group has acquired Units 1 & 2 Neptune Court on Orion Business Park from Parmley Technologies and leased them back to the company by way of a 10-year agreement.

The deal releases funds to support Parmley’s ambitious plans to grow and develop its business as it sees continued strong demand in the UK and abroad for its electronic control technology.

The two high bay units, which also feature mezzanine storage facilities, loading access, canteen and energy efficient LED lighting, offer 11,590 sq. ft. (1076.75 m²) of industrial workspace.

MCM has invested in the units as part of a strategic move to build a national property portfolio featuring market leading assets delivering strong performance.

Douglas Cranston, investment director at MCM Group, said: “The Neptune Court units, which are in a great location close to the A19, are an excellent addition to our portfolio. The industrial sector has been performing extremely well for the past five years, providing strong yields for investors on the back of rising rents and capital values due to a shortage of good quality stock in the right locations.

“We are working hard to identify and secure a wide range of commercial opportunities across the UK and look forward to announcing further additions to our portfolio in the months ahead.”

Newcastle investment and asset management firm MHPI (Metcalf Harland Property Management) acted on behalf of MCM, while industrial property consultants HTA Real Estate represented Parmley.

Derek Parmley, managing director of Parmley Technologies, said: “We have been based here at Neptune Court for over 14 years and our premises provide the ideal environment to cater for the evolving requirements of the business. The sale and leaseback deal will enable us to undertake strategic investment to facilitate further expansion and we look forward to a long and productive relationship with the team at MCM.”

Parmley Technologies provides PCB manufacturing as well as electronic control panel assembly, wiring, hydraulic assembly and in-house test capabilities. Its systems are used in power distribution units, hydraulic and pneumatic control systems and joystick consoles.

Earlier this year MCM Group announced the £2.475m acquisition of industrial premises in Wakefield which are occupied by Yorkshire Ambulance Service NHS Trust. The independent property investment business also secured a 10-year letting to Speedy Hire following the acquisition and refurbishment of premises at Felnex Road in Leeds.