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Local councils invest in warehousing as hedge against future cuts in government grants

Local councils invest in warehousing as hedge against future cuts in government grants

Warrington Council has splashed £45.3 million buying a warehouse at Haydock in what is one of the largest deals of its kind Rental income from the 377,000 sq ft warehouse will help pay for council services, and provides a better return than other forms of investment. Councils fund the purchases by borrowing on super-low interest rates through an arm of the Treasury.

In the Warrington deal B8RE Ltd acted on behalf of the owners of the unit occupied by Movianto, a global healthcare logistics business.

The owners were A S Kendall and S R Thomas of Moorfields Advisory Limited as Joint Administrators of Industrial North West LLP, have disposed of a prime distribution unit of 377,000 sq ft fronting onto the M6 motorway in Haydock Industrial Estate.

The investment has been purchased by Warrington Borough Council at a price of £45,300,000 reflecting a net initial yield of 4.82%.  

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