CCLA’s Local Authorities’ Property Fund has acquired the Co-operative distribution warehouse at Cardinal Distribution Park in Huntingdon from a private property company for £9.30m, reflecting a net initial yield of 5.44% and a reversionary yield of 6.75%.

The property comprises a warehouse that totals 98,445 sq ft and a 4.8 acre lorry park, producing a total rental income of £535,000 per annum and reflecting £4.44 per sq ft on the building. The property was originally let to Wincanton Holdings Limited and has been assigned to Somerfield Stores Limited with an unexpired term of circa four years.

James Fairweather, Head of Industrial and Logistics at Strutt & Parker, who acted for CCLA said: “This is a well located distribution warehouse with an extremely low site cover providing a potential development opportunity to the south of the site. The unit is well let to an undoubted covenant and provides strong rental growth prospects, making it an attractive addition to Local Authorities’ Property Fund that has grown significantly in recent years and currently stands at £541m.”

Michael Kershaw, Director and selling agent at Colliers International, added: “The quality of the warehouse and location shone through, and we were delighted to receive strong interest from a number of potential buyers and to conclude the transaction with CCLA quickly and efficiently”.

Strutt & Parker advised CCLA; the vendor was represented by Colliers International.