Investec buys retail shed

South African investor Investec Property has spent £10.8m to buy a 221,517 sq ft distribution centre in Agecroft Commerce Park, Salford off Aegon UK Property Trust.

The property forms the national distribution centre for Bunzl Retail and is currently let to Bunzl Retail & Healthcare Supplies on a lease expiring on 31 March 2027, subject to a break option on 31 March 2017 and at a rent of £975,000 a year. The lease is guaranteed by Bunzl, a FTSE 100 company. The property was built in 2003 and comprises a modern, high specification distribution warehouse.

Crispin Gandy, Investec Property, said: "This is an attractive deal for Investec as it offers the potential to add value to a prime asset, whilst being underpinned by sound occupational fundamentals. We expect 2012 to be an interesting year for further acquisitions as markets continue to adjust to the economic uncertainty."

Knight Frank acted for Investec and Jones Lang LaSalle advised the Aegon UK Property Trust.