Royal Mail’s Warrington warehouse sold for £7.68m

[TrueBlueTerrier]

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The Royal Mail North West regional distribution centre in Warrington has been sold for £7.68 million to the CCLA’s Local Authorities’ Property Fund.

The 183,474 sq ft warehouse will return a net initial yield of 7.75% and will remain let to the Royal Mail Group Limited. The site on Winwick Quay was sold on behalf of the vendor by DTZ, while Capita represented CCLA’s Local Authorities’ Property Fund on the deal.

Martin Hamer, divisional director, Capita, says: “This was an excellent acquisition for the client. The property comprises a large distribution facility within Warrington’s prime industrial destination.

“The North West currently has a limited supply of available large units, with strong demand from occupiers. This, combined with significant institutional demand for quality regional assets, means this is an excellent acquisition for our client.”

Simon Lowe, associate director, DTZ, adds: “After much competitive interest, we are pleased to have concluded this sale to CCLA, who will be well placed to capitalise on the shortage of good quality, well located distribution space in the market. The price point of this unit arguably offers occupiers one of the best value for money propositions in the North West.”

[maisymoo04]

Call me thick ?? Why has it been sold if royal mail have never left the site

[Mr_Pink]

Sale & Leaseback, quite common in business, frees up a load of cash, and the rent they have to pay can be offset against tax.