Bolton warehouse sold for £16m

A STANDARD Life fund has sold a warehouse in Bolton for £16m.

In a brief stock market statement the Standard Life Investments Property Income Trust said the deal to an unnamed buyer represented a yield of 7.25%.

The logistics unit in Bolton is let to Tesco until September 2016 at a rent of £1.2m a year.

“A purchase is currently in solicitors hands to reinvest the sale proceeds,” said Standard Life.

It did not say where the unit was, but Tesco has space at Wingates Industrial Park in Bolton which it uses to distribute entertainment merchandise through a subsidiary called Oakwood Distribution.

Fund manager Jason Baggaley said: ‘This sale was undertaken to control lease expiry risk in line with the active management strategy for the fund. Most of the sale proceeds will go towards the purchase of an office in the South East providing longer secure income at a yield of 8.1%.”