Deal with major online retailer completes hat trick of lettings

AEW UK Investment Management LLP (AEW) has agreed a five-year lease with a major online retailer for its 512,500 sq ft logistics warehouse development near Wakefield.

The development is part of the Allianz Real Estate segregated account managed by AEW launched in February 2019.

It focuses on develop-to-core opportunities in prime locations in the UK. The unit is currently under construction, with completion expected in June 2021. Once complete, the venture’s portfolio of three sites will be fully let.

The unit, named Wakefield 515, will have over 80 dock level doors and parking spaces for over 229 HGVs as well as a rainwater harvesting system.

AEW manages the Allianz-owned separate account vehicle which focuses on funding speculative development of units of 200,000 sq ft or larger in prime locations across the UK.

This is the third letting for the portfolio and the first pre-let agreement. Following the recent letting agreement for East Midlands Distribution Centre 525 with Buy It Direct, occupancy across the whole portfolio will be 100% once letting starts in June.

Spencer Corkin, director, Acquisitions at AEW said: “We are pleased to announce the third letting for our logistics venture with Allianz Real Estate.

“The demand for Grade-A warehousing remains strong, particularly in West Yorkshire, where supply at the larger end is limited.

“We now have a fully occupied portfolio of Grade A logistics facilities and will look to expand our footprint by continuing to do speculative developments of Big Boxes in well-established but under supplied locations across the UK.”

Charlie Royle, executive director, asset management, at AEW added: “The development of Wakefield 515 is being completed to the highest standards and specifications and is on schedule and on budget.

“We are very pleased to have agreed a pre-let with another exemplary occupier in the logistics sector and look forward to completion of the development and to welcoming them to Wakefield 515.”

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