CCLA's Local Authorities' Property Fund has bought the 183,000 sq ft Royal Mail regional distribution centre in Warrington for £7.68m, a net initial yield of 7.75%.
The property is situated on a large site at Winwick Quay. The unit is currently let to Royal Mail Group with more than four years remaining on the lease.
CCLA was advised by Capita. DTZ acted for the vendor, who remained confidential.
Martin Hamer, divisional director of Capita, said: "This was an excellent acquisition for the client. The property comprises a large distribution facility within Warrington's prime industrial destination.
"The North West currently has a limited supply of available large units, with strong demand from occupiers. This, combined with significant institutional demand for quality regional assets, means this is an excellent acquisition for our client."
Simon Lowe, associate director of DTZ, said: "After much competitive interest, we are pleased to have concluded this sale to CCLA, who will be well placed to capitalise on the shortage of good quality, well located distribution space in the market. The price point of this unit arguably offers occupiers one of the best value for money propositions in the North West."