F&C REIT Asset Management has purchased a distribution unit at Midpoint 18 Middlewich, Cheshire from Aviva's Norwich Property Trust for £16.5 (EUR 18.7 mln).

F&C REIT Asset Management has purchased a distribution unit at Midpoint 18 Middlewich, Cheshire from Aviva's Norwich Property Trust for £16.5 (EUR 18.7 mln).

The acquisition was made on behalf of Omaha, a vehicle owned by Trafalgar Overseas (advised by F&C REIT) and Area Property Partners. The investment volume reflected a net initial yield of 9.3% and a reversionary yield of 10.8% in July 2010.

The 34,740 m2 distribution facility was developed in 2000 and incorporates 1,476 m2 of ancillary office space. F&C REIT said the property is situated in the strategically located mid-Cheshire town; half a mile from Middlewich town centre and within 2 miles of junction 18 of the M6. The facility is currently let to Wincanton Group, a European supply chains solutions provider, on a 15 year lease term from August 2004 at a passing rent of £1.6 mln per annum.

Neighbouring tenants in the established distribution park include Tesco, Churchill Insurance and UK Assistance.

Zvi Noé, Director of Investment at F&C REIT, said, 'The acquisition of this prime distribution unit is a further indication of the current strength of F&C REIT's position in being able to identify and enable its clients to purchase high specification well built properties at attractive yields. The facility is currently let to a good tenant on a long term lease with minimum fixed uplifts which demonstrates the quality of this particular unit as well as the strong logistical location it is situated in.'

Goldenberg Real Estate acted on behalf of F&C REIT. King Sturge acted for Aviva Norwich Property Trust.