New Lease and Potential Sale of Major North West Warehouse

The property, one of the largest available industrial freeholds in the North West, was brought to market with leading independent real estate advisory Davies Harrison appointed as sole agents.

In a trading update issued on April 7, the company confirmed that its marketing efforts have resulted in transactions being entered into by Q-Stat, Character Group’s UK-based, wholly owned property investment subsidiary, which holds the title to Infinity House on behalf of the group.

The deal includes the grant of a five-year lease of the warehouse premises, totalling 138,084 sq ft, to Manchester-based Comfy Quilts (CQ), a substantial privately owned trading company. The agreement excludes the office complex and associated parking area at the front of the site.

The annual rent payable under the lease is approximately £773,000 (£5.60 per sq ft), generating a total contracted income of £3.865m over the term. The lease includes a tenant break option at the end of year three.

In addition, an option agreement has been entered into with Robertsbridge Property, a company connected with CQ, to acquire the entire Infinity House property. This includes both the warehouse facilities and the office complex, which extends to approximately 19,408 sq ft.

The option allows for the acquisition of the freehold for £9.8m in cash, with 10% payable upon exercise and the balance due on completion. If exercised, the purchaser will have 20 business days to complete the transaction. The option will lapse at midnight on June 30, 2026, if not taken up.

The board of Character Group noted that it has not yet determined how any proceeds from a potential sale would be utilised.

Rick Davies of Davies Harrison commented: “Against a backdrop of ongoing economic uncertainty, this is a very positive outcome and a great deal for all parties involved. The structure of the transaction works well for Character Group and Q-Stat, providing both income certainty and future flexibility.

“This was a transaction with a clear target to complete by early April, and it is due to the efforts of all parties involved that the deadline was met. As a new tenant, Comfy Quilts represents a strong covenant and with a credible purchaser option, underlines the strength of the underlying asset.

“Despite wider market concerns, we experienced strong levels of interest in the property, demonstrating continued demand for well-located, good-quality second-hand industrial space across the North West.”