Global developer and investor Trammell Crow Company has paid a record land price for 19.4-acre site in Milton Keynes where it intends to develop a 340,000ft2 speculative warehouse scheme.
The company is thought to have paid around £38 million – equivalent to £2 million per acre – for the former Arcadia distribution centre on Merton Drive, which will be redeveloped. Construction is expected to begin in Q2 2022 with an expected completion date of Q2 2023.
“This is a unique opportunity, and we are extremely pleased to acquire our first site in Europe having only entered the market a few months ago,” said Mike Forster, Director and Head of UK logistics for Trammell Crow Company. “This important acquisition demonstrates our ability to identify and close prime opportunities quickly, in order to facilitate the rapid planned expansion of our European development programme.”
The master planned site will comprise three buildings of 212,309ft2; 70,816ft2 and 51,420ft2. The building clear heights will range from 12-15m with yard depths ranging from 50-65m.
With the growing likelihood of electric vehicles (cars and lorries) and increased levels of automation and overall power demand, the buildings will provide increased load capacity on the roof to accommodate photovoltaic arrays and additional natural daylighting. It will also house transformers and primary electrical frameworks sized for increased electrical demand and reserves of power, and have infrastructure made ready for electric vehicle charging. Additionally, it will provide increased capacity of floor slabs for floor-standing mezzanines and pick-towers and have the flexibility to accommodate various office configurations.
In addition, the buildings will seek BREEAM ‘Excellent’ certification.
CBRE represented Trammell Crow Company on the purchase, and DTRE represented the seller in the transaction, both will be retained as letting agents on the scheme.