AEW and Allianz Real Estate have sealed their deal to buy a 515,000 sq ft logistics site in Yorkshire from Caddick Development Group.
Work on the Wakefield 515 development is set to start this month and complete during late 2021. AEW said several potential tenants have already expressed interest in taking space.
AEW and Allianz’s develop-to-core joint venture, set up last year, now has 1m sq ft of completed developments under its ownership. The jv recently reached practical completion on Fradley 430, a 430,000 sq ft facility in the East Midlands.
Nick Winsley, managing director and head of investments at AEW UK Investment Management, said: “With the UK demonstrating historically strong take-up, occupancy levels and rental growth and with very little new Grade A supply in the Yorkshire market over 200,000 sq ft, the timing is right for this development.”
Kari Pitkin, head of business development for Europe at Allianz Real Estate, added: “We expect the logistics sector to continue benefitting from strong market fundamentals such as the continued growth of online shopping.”
AEW was represented by Gerald Eve and Mishcon de Reya.
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