London-based investor Northtree Investment Management acquires 37,568 sq ft distribution warehouse in Warrington, described as a ‘rare asset’, after ‘fierce’ bidding war. Tony McDonough reports
Institutional investor Northtree Investment Management has acquired a distribution warehouse at the Winwick Quay industrial estate in Warrington.
Agents at B8RE, acting on behalf of London-based Northtree, agreed the deal to buy the 37,568 sq ft and 4.3-acre site with an unnamed pension fund client of Colliers Global Investors.
Value of the transaction was not disclosed but there was significant interest in the site which resulted in “fierce bidding” through multiple rounds.
This property fronts the M62 motorway and is three minutes from Junction 9 on the M62 offering access to the national motorway network via the A49.
It is occupied by long-standing tenant QAS Group on a 10-year lease with the opportunity to capture significant reversion at the upcoming rent review.
John Burrows, investment director at B8RE, said: “This asset is very rare and as a result there was unsurprisingly strong competition when bidding on the property.
“The asset is situated in a prime industrial and logistics hub and offers very low site density at 20% with extensive fully concreted service yards to three elevations.
“There are several short and longer-term asset management opportunities available to our client, and we will be advising Northtree going forward to help maximise the value of the asset.”
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Neighbouring occupiers include Next, Safestore, Evri and Great Bear. The seller was advised by Michael Kershaw, director at Colliers.
He added: “The low site cover, prime North West motorway location and near-term rent review which offered significant reversion really caught the attention of the investment market.
“Fierce bidding through multiple rounds of bids pushed the sale price sub 4% NIY, and we could have sold this property several times over at that price.
“The buyer and seller and their respective professional teams worked well to ensure a smooth transaction and a great result for all parties.”