AEW UK Investment Management LLP has announced it has agreed a five-year lease with a major online retailer for its 512,500 sq ft logistics warehouse development located near Wakefield, West Yorkshire. 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, on time and on budget, with completion expected in June 2021. Once complete, the venture’s portfolio of three sites will be fully let.
The unit, named Wakefield 515, is ideally located between the M62 and A1, and nearby the M1, providing excellent logistical support across the North of England. The Grade A logistics development is being completed to the highest standards, with a BREEAM Very Good and EPC A ratings. The unit will have over 80 dock level doors and parking spaces for over 229 HGVs as well as a rainwater harvesting system and 15% roof lights.
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 commences in June.
Spencer Corkin, Director, Acquisitions at AEW commented: “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 commented: “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.”
