Gazeley has completed a deal with grocery giant Waitrose for the largest industrial letting in two years, as revealed by Estates Gazette in January.
The new 940,000 sq ft national distribution centre on Magna Park Milton Keynes will serve as Waitrose’s new national distribution centre, supplying its rapidly expanding UK network of supermarkets and convenience stores.
Waitrose is paying around £5.75 per sq ft on a 25 to 30 year lease.
The new 45-acre distribution centre will become one of the UK’s largest distribution centres. Waitrose will consolidate a number of smaller locations in the Milton Keynes area into the new centre.
Gazeley chief executive Pat McGillycuddy said: “We are absolutely delighted to have been chosen by Waitrose to deliver their first-ever national distribution centre. There is no better endorsement of our quality of service, delivery capability and product than repeat business with customers who see Gazeley as a trusted partner.”
“We are proud to be part of the growing Brookfield global logistics platform that along with US-based IDI gives us global scale to serve customers and grow our business.”
This will be the third shed for the John Lewis Partnership, which has so far amassed in excess of 2.3m sq ft of grade A distribution space to fuel the next phase of its rapid expansion.
Waitrose supply chain director David Jones said: “The decision to open our first national distribution centre marks a pivotal moment in our supply chain history and reflects our phenomenal growth.
“Waitrose has outperformed the market for five years and we have ambitious plans to open 38 shops in 2014 and continue to expand our online platform.”
Gazeley has submitted an application to Milton Keynes council for the development on plots 310 and 320 at the park. A decision is expected in March.
Waitrose’s deal is the largest industrial letting since Sainsbury’s took a 1m sq ft distribution centre at Prologis’ Daventry International Rail Freight Terminal in October 2012.
It follows last year’s 670,000 sq ft prelet to John Lewis at Magna Park, which Gazeley forward sold to Aviva Investors for £74m, reflecting a 4.9% yield – a record for the shed sector.
Magna Park Milton Keynes is Gazeley’s flagship UK logistics park. It accommodates 2m sq ft for John Lewis, River Island and AG Barr. Following the deal with Waitrose the remaining 80 acres of land will be able to accommodate up to 900,000 sq ft of industrial and distribution space.
Savills, JLL and Burbage Realty act for Gazeley on Magna Park. Colliers International advised Waitrose.
chris.berkin@estatesgazette.com
