IDI Gazeley has hung a for sale sign over its 638,000 sq ft super-prime distribution development for John Lewis in Milton Keynes, Buckinghamshire.
Savills and JLL have been instructed to market the shed at £78m – a 4.75% yield. But market sources believe the weight of money piling into the sector could push the price up to £85m – a 4.25% yield.
Institutions including Legal & General, Aviva, M&G Real Estate and Standard Life are expected to pitch for the forward funding as demand for single-let sheds on long leases increases.
John Lewis signed a 25-year lease at £5.50 per sq ft on the shed earlier this month. It will be used to handle furniture, electricals and home furnishings when construction is completed.
The retailer occupies 1.3m sq ft in two facilities on Magna Park MK, while subsidiary Waitrose occupies 938,449 sq ft.
All three have achieved record yields for the big-box market, with the Waitrose shed forward purchased by L&G for £114m – a 4.64% yield.
