Fashion giant signs 15-year lease for major warehouse space

Fashion giant ASOS has signed a deal with AEW for a 15-yr lease with on for a 437,000 sq ft warehouse at Fradley Park, Lichfield.

The warehouse forms part of the joint venture between AEW and Allianz Real Estate launched in February 2019, focused on develop-to-core opportunities in prime locations within the UK logistics sector.

Fradley 437 achieved Practical Completion in March of this year. It is the last major development plot on Fradley Park Industrial Estate at Lichfield, whose occupants include Tesco, DHL, Screwfix, Tile Giant, Newell and Great Bear Distribution.

Nick Winsley, managing director and head of investments at AEW UK Investment Management, said: “We are delighted to have secured ASOS as a tenant at this key location, as it continues to grow its business across the world. There continues to be strong demand for Grade-A warehousing, where supply at the larger end is more limited and we look forward to continuing with our funding programme in the new year”

Kari Pitkin, head of business development for Europe, Allianz Real Estate said: “As we build our logistics venture in the UK against the favourable backdrop of limited availability and increasing tenant demand for larger format warehouses, we are pleased to bring ASOS into Fradley Park. More broadly, the logistics sector continues to represent a key focus within our diversification strategy. We expect for strong market fundamentals in the sector such as the growth of online shopping and supply chain rationalization, to continue to offer growth opportunities through investments in prime real estate in excellent locations.”

MWRE and Avison Young, represented the landlord and Knight Frank represented ASOS.