Tritax/Cedarwood buy in Lancashire

Tritax Industrial 1 LP, a new joint venture between Tritax and Cedarwood Asset Management, has acquired a 106,000 sq ft industrial building in Chorley from Mirel-Rotch Investments.

The building sits on 8.9 acres on Carr Lane and is let to Telent Technology Services on a 99-year lease with 56 years unexpired. The value of the deal was not disclosed.

Cedarwood will asset manage the holding going forward. The JV is the first in a series of Tritax / Cedarwood limited partnerships seeking to acquire around £100m of assets in 2010/11 with the objective of generating returns in excess of 12% a year.

Anthony Wyld, head of marketing at Tritax, said: "The opportunity remains to acquire assets for 20-30% less than their value of three years ago, in an exceptionally low interest rate environment. With Cedarwood's 'added value' total returns of over 12% are possible even in the event of a lacklustre economic recovery."

Colliers CRE acted for Tritax / Cedarwood and James Andrew represented the vendor, Mirel-Rotch Investments.

Mike Walker, head of the Manchester office of Colliers CRE, said: "The industrial investment market in the North West is certainly beginning to show signs of improvement with the supply of quality investments very tight."