Purpose

An allocation of 3% of Fund assets to GMPVF, was ratified by Panel in June 2022.

Approval is sought for the acquisition of a rail freight storage facility located in Widnes. The property is entirely let to one single occupier with a lease expiring in 12 years.

The site is of strategic importance to the tenant’s business operation. The site also has further demand potential over the longer term, either through other occupiers leasing the facility, or through change of use.

Due diligence has been undertaken by one of GMPF’s external managers.  A report is provided as an appendix supporting the proposed acquisition price.

The acquisition is considered to be well suited to GMVF’s current investment requirements being a defensive asset with a strong income return and high land value underpin. The investment is also considered to be a good addition to the investment portfolio by further increasing the exposure to the alternative sector and increasing the income return.

Decision

DETERMINED that as part of the 3% Greater Manchester Property Venture Fund (GMPVF) allocation approved by Panel in June 2022, to approve a commitment of £32m to acquire a rail freight storage facility, subject to the usual property due diligence before purchase.