A £2.2m sale and leaseback deal on 14 Chesford Grange, Warrington, the UK warehousing and distribution hub of Dinex Exhausts Ltd, has been completed by real estate advisors Colliers International.
Acting on behalf of Dinex Exhausts, the Manchester office of Colliers sold the 40,810 sq ft (3,791 sq metre) facility constructed in the mid-1980s to BLME Light Industrial Fund, reflecting an initial yield of 7.83 per cent.
The single storey detached industrial unit on 1.78 acres near Junction 21 of the M6 motorway is let to Dinex Exhausts on a new 10 year lease with an initial rent of £183,645 per annum, representing £4.50 per sq ft.
Dinex Exhausts Ltd is a subsidiary of Denmark-based Dinex Group, a global manufacturer and distributor of innovative exhaust and emission control products and solutions for the heavy duty diesel and gas engine industry.
BLME – Bank of London Middle East – is an independent UK bank based in London with an office in Dubai.
Chris Ward, surveyor, national capital markets at the Manchester office of Colliers, completed the sale and leaseback of 14 Chesford Grange.
He said: “This strategic acquisition by the BLME Light Industrial Fund reflects increasing investor interest in such high yielding opportunities throughout the North West of England as demand for good-to-go industrial and logistics properties buoyed by an improving economy continues to outstrip availability.
“While we forecast an increase in speculative development in the sector in 2016, we feel it may not be sufficient to meet the demands of investors and indeed occupiers and therefore anticipate continued high levels of interest in industrial and logistics properties coming on to the market.”
Paul Valentine, UK sales manager for Dinex Exhausts Ltd, said: “From our perspective, as the occupier of 14 Chesford Grange, this sale and leaseback transaction with BLME Light Industrial Fund enables Dinex to continue servicing its extensive customer base with exhaust and emission technologies from this prime UK location.”
