CBRE Global Investors has sold Point 62, a 140,000 sq ft warehouse in Stakehill Industrial Estate, to Rochdale Council for around £10m, reflecting a net initial yield of 6.2%.
The newly refurbished distribution warehouse is let to Footasylum on a 10-year lease, giving around £680,000 a year in rent. Stakehill Industrial Estate is located off Junction 20 of the M62, in Middleton.
Cllr John Blundell, cabinet member for regeneration at Rochdale Council, said: “With 80% of the site now occupied, Stakehill is one of Rochdale’s many business success stories, and an obvious place to invest. This latest acquisition is part of the council’s new investment drive, following the approval last year of £30m of funding to acquire properties which attract a high rental yield. This strategy is expected to generate an additional half a million pounds a year of income for the council and also contributes to the continued regeneration of our borough.”
Carrick Real Estate and Knight Frank advised the vendor on the deal.
Steve Carrick, partner at Carrick Real Estate, commented: “The strength of the Footasylum covenant and prime location meant we had significant investor interest in this asset. We are currently witnessing very strong demand for industrial and distribution investment opportunities, a trend we forecast continuing throughout the year.”
Cushman & Wakefield and Lambert Smith Hampton advised the council.