Council snaps up warehouse investment on sub 5 per cent yield

Warrington Council has snapped up a 377,000 sq ft warehouse let to healthcare logistics service company Movianto on a 15 year lease at a yield of sub 5 per cent.

The property was bought from the joint administrators of Industrial North West (formerly known as Morely Estates) for £45.3 million reflecting an initial yield of 4.82 per cent.

Simon Wood of B8RE, which advised on the sale, said,  “this [deal] reflects the continued institutional demand for well let prime logistics properties located in the North West of England.”

Matt Stretton of Knight Frank, which advised the council said:  “We see this as an absolute prime industrial location which will continue to see more industrial activity and rental growth”.

B8RE acted on behalf of the vendor, A S Kendal and S R Thomas of Moorfields Advisory Limited as Joint Administrators of Industrial North West LLP.

Knight Frank acted on behalf of Warrington Borough Council.

By Liza Helps