GMPF buys Vita Group’s Middleton HQ for £20.25m
The Greater Manchester Pension Fund has acquired the manufacturer’s 590,000 sq ft Oldham Road complex from Rock Co.
GMPF’s £20.25m acquisition reflects a net initial yield of 7.15%. Buckinghamshire-based investor Rock Co, headed up by former professional footballer Roger Smee, put the site up for sale last summer with a guide price of £19.35m.
Vita Group’s headquarters occupies a 17-acre site off in Middleton and comprises almost 600,000 sq ft of manufacturing facilities, warehouses, R&D facilities and offices, as well as the company’s global innovation centre.
Vita Group, which manufactures polyurethane foam products for a range of different industries, has been based at the site since 1955. The company has invested more than £10m in the facility in the last three years.
The properties within Vita Group’s headquarters are currently leased to the occupier with the agreement of annual RPI uncapped rent reviews for the next six years.
Vita also has the option to renew its existing lease for another 15 years.
CBRE acted for Rock Co and Avison Young acted for the GMPF.
David Winterbottom, principal of capital markets at Avison Young, said: “We are delighted to have completed this acquisition on behalf of our retained client, which continues our investment programme across the North West and West Yorkshire.”
Will Kennon, director at CBRE, said: “The nature of the investment with uncapped annual RPI indexation has become even more sought after in recent months, driving competitive bidding to levels in excess of quoting price”.
