Property fund invests £30m in Poundland distribution hub
THE Standard Life Investments Long Lease Fund is investing £30m to forward fund the development of a new warehouse and distribution centre for Poundland near Wigan.
Discount retailer Poundland has agreed a 20-year lease on the proposed 335,275sq ft facility.
Situated off the M6, the completed development will be Poundland’s North West regional hub, creating 800 jobs locally.
Commercial property developer Stoford, has been appointed as the development partner for the project and will deliver the Webb Gray-designed building. Work is expected to start on site in September with anticipated completion in June 2016.
Richard Marshall, fund manager of the Standard Life Investments Long Lease Fund, said: “We’re delighted to have secured further exposure to both the industrial sector and to the Poundland covenant, having funded their South East regional hub in 2013 in Harlow.
“This acquisition also increases the fund’s income stream that is linked to RPI and fixed increases to over 90%, helping our investors match their pension fund liabilities.”
Stoford joint managing director Dan Gallagher said this is “a project which we are very excited to be involved in”.
Poundland’s head of portfolio management Ben Wall said: “Poundland continues to grow its estate rapidly with 60 new stores acquired in 2014/15 and a further 60 new stores planned for 2015/2016.
“This new North West distribution centre will provide a ‘green’ high specification distribution hub for the North and ensure that as the store portfolio grows we can continue to deliver amazing value to our customers every day.”
Cushman and Wakefield advised Poundland.
