Standard Life Investments Property Income Trust has exchanged contracts for the purchase of a retail warehouse in Bury, Greater Manchester.
The 41,280 sq ft unit is let to B&Q on a lease expiring in June 2022 at a current rent of £9.50/sq ft.
Standard Life said the warehouse "benefits from an open A1 non food planning consent" and the purchase price of £5.3m represents a net initial yield of 7%.
Jason Baggaley, manager of Standard Life Investments Property Income Trust, said: "The purchase provides further diversification for the Company with exposure to a first class tenant on a property with prospects for rental growth in the future. It continues our policy of investing in quality assets where the income will enhance the revenue account, and represented a good opportunity to gain exposure to the retail warehouse sector."
Standard Life said it purchased the retail warehouse on Crostons Road from a private investor.