Real estate asset managers AEW and Allianz, is building two speculative logistics facilities totalling just under 1 million sq ft in the Midlands as part of a recently launched UK logistics venture.
It is building a 525,000 sq ft cross–docked warehouse at the East Midlands Distribution Centre (EMDC), which it acquired with planning permission from CWC Group.
Due for practical completion in December 2019, the new-build project will have 50m yards on both sides with a clear haunch height of 18m. The building which is now under construction will be completed to EPC ‘A’ and offer a BREEAM ‘Very Good’ rating.
The building is located on a 25 acre site next to the 1 million sq ft M&S national distribution centre. The scheme has motorway connections onto the M1 at Junction 24a and positioned less than 5 miles from East Midlands Airport.
Charlie Royle, director at AEW UK Investment Management, remarked: “When complete this facility will be one of the largest speculative buildings of its type anywhere in the UK and will provide occupiers choice in this supply starved market. We are currently seeing a national shortage of prime, well located, energy efficient warehousing – and have already had interest from a number of tenant prospects.”
A second deal has seen the joint venture acquire Fradley 432, a speculative 431,500 sq ft logistics facility at Fradley Park in Lichfield, West Midlands from Evans Property Group. Evans will also develop the site for AEW as part of the agreement.
Due for practical completion in Q1 2020, the proposed new build will have a 100m yard with a clear haunch height of 15m.
AEW has appointed McGuiness Waddington Real Estate and Avision Young as joint letting agents for Fradley 435, while Franck-Steier Price acted for AEW on the acquisition.
Earlier this year AEW announced that Allianz had committed €290m towards a develop-to-core UK logistics venture, managed by AEW.