Grange Packing Solutions and Cara Developments have completed a sale-and-leaseback deal on a 43,000 sq ft warehouse on Kingsland Grange Industrial Estate in Warrington.
Cara has bought the property from Grange in a deal worth more than £2m, and as part of the agreement, the building has been leased back to Grange, which has been based at the site for more than 10 years, for seven years at a rental income of £195,000 per annum.
Founded in 1992, Grange carries out contract packing projects for household food and gift brands including John West and Burtons Biscuits.
Steve Lloyd, chief executive of Grange Packing Solutions, said: “This deal was a strategic opportunity for our company as it meant we could release capital, allowing us to fund investment in new packing lines and move forward with our growth ambitions.
“We’re delighted to be staying at Kingsland Grange, which has been our home for more than ten years. We fully appreciate the advantages of being based on the site and are committed to investing in our future here.”
Other occupiers at Kingsland Grange include Amazon, Britplas, and Speedy Hire, while Grange’s head office is also based at the site. Cara was represented by Christopher Dee, while Grange Packing Solutions was represented by Legat Owen.
Matt Pochin, director at Legat Owen said: “Sale-and-leaseback opportunities like this are few and far between, so we had strong interest from the start.
“Cara could see the huge potential which came with Kingsland Grange and we are confident that the investment will perform strongly for them.”