630,000 sq ft pre-let deal signed with vehicle parts distributor
Real estate investment manager Europa Capital and developer Panattoni have signed a 630,000 sq ft 25-year pre-lease with vehicle parts distributor Alliance Automotive Group at Rotherham logistics park, on behalf of value-add fund Europa Fund VI.
Alliance Automotive Group (AAG) subsidiary Ferrari Piston Services (FPS), a distribution partner for a number of leading automotive brands, will occupy the space and is expected to start its move into the property next summer with operations beginning in 2025.
89% of the site is now pre-let with construction of the facility, along with a smaller 80,000 sq ft unit, expected to complete in July 2023.
Rachel Hanke, managing director and value-add fund manager at Europa Capital, said: “Despite current headwinds, securing a pre-let with a tenant such as AAG at an early stage of construction is a testament to the resolve of the asset management team and strength of the fundamentals in the sector, especially for high-quality assets such as the Rotherham logistics park.
“We continue to experience a good level of occupier interest in the remaining unit and are focused on letting up this space.”
James Keast, asset manager at Europa Capital, said: “The signing of this lease is a huge milestone for our development in Rotherham.
“Our park offers a unique opportunity to lease a large site in a prime logistics location which has a fundamental lack of supply.
“We look forward to welcoming AAG as a new occupier and working with them to deliver the modern and high specification building which they require for their operations.”
Dan Burn, head of development, North West & Yorkshire, at Panattoni, said: “This major pre-let to AAG endorses our continuing commitment to a significant speculative development programme across the UK and our continued confidence in the logistics sector.
“We look forward to working with AAG over the coming months as we bring significant investment and employment opportunities to Rotherham.”
Steve Richardson, AAG’s managing director, added: “We’ve experienced significant growth since acquiring FPS in 2016 and this investment not only allows us to consolidate our three existing facilities in Sheffield, but also forms part of our wider programme to strengthen our distribution infrastructure to ensure we are prepared for future growth.
“This will be a purpose-built, state-of-the-art facility, integrating best-in-class logistics operations with advanced technologies to put us at the forefront of aftermarket distribution.
“As we move forward customers can expect an even wider product offering alongside market leading service and support. It’s an exciting next step in our journey and we expect the new facility to be operational in 2025.”
Letting agents are M1 Agency, Legat Owen and Knight Frank.