Malik Group buys Rainton House

The 218,000 sq ft headquarters office building is occupied by Just Eat and was put up for sale at £11.5m this summer.

Knight Frank handled the sale of the complex, which is made up of four interlinked four-storey arms.

The building was originally developed on a pre-let basis for a bank, and is situated at Rainton Bridge business park, between Sunderland and Durham.

Although the sale price was undisclosed, as reported when the building was marketed in summer, a trade at the guide price would reflect a net initial yield of 23.22%.

Food delivery app business Just Eat took occupation in 2021, taking the lease on assignment from Npower, and has spent £11m on fit-out. The lease expires in August 2025.

Posting on LinkedIn, Knight Frank capital markets partner Craig Barton said “We are really pleased to close the sale of Rainton House in Sunderland for our client, to the Malik Group. Great work by the buyer and it was great to work with our colleagues in Newcastle, Dickon Wood, Erin Percy and John Edwards.”

Reed Smith provided legal advice.