Rentokil agrees sale-and-leaseback

The Charities Fund has paid £4m to buy a 69,000 sq ft warehouse on the Appleton Thorn Trading Estate in Warrington from owner-occupier Rentokil.

The headline rent of £4.43/sq ft provides an initial net yield of 7.2%. The current tenant in the property, City Link, part of Rentokil, has an existing 10-year lease with a break clause in 2018, which provides an average weighted unexpired lease term of four years.

The building, located near the M6-M56 intersection, provides 59,000 sq ft of warehouse and storage space and 10,000 sq ft of office accommodation over two floors.

Gurminder Manak, associate in GVA's investment team in Manchester, said: "We have seen strong interest in distribution and warehouse facilities from investors as the amount of consumer goods and industrial products moved in the region continues to increase rapidly.

"The location of the property at the Appleton Thorn Trading Estate provides quick access to all points in the country – our client understands the advantages the site provides tenants and we are confident that the investment will perform strongly."

JLL acted for Rentokil. GVA advised the Charities Fund and fund manager Cordea Savills.