A House of Fraser logistics hub in Peterborough is being prepped for a £75m sale.
Developer Roxhill is looking to forward sell the 750,000 sq ft unit at its 5m sq ft Gateway Peterborough development, which the retailer is considering for its new distribution hub.
House of Fraser launched a 1m sq ft requirement through Knight Frank at the end of last year to support its growing online operation. It is looking to take a lease of at least 20 years. Rents at Gateway Peterborough average £3.95 per sq ft.
The funding opportunity, which is also being marketed by Knight Frank, is separate to a deal agreed last month in which SEGRO bought options on Roxhill’s £800m development pipeline.
It is likely to attract interest from UK and international investors looking to cash in on the industrial investment market.
Investment in logistics assets has become increasingly popular, with investors looking to take advantage of the long-term income associated with structural changes in the retail sector.
Developer CWC Group and The Range owner Chris Dawson both recently launched industrial forward funding opportunities which have been prelet to retailers. Dawson is looking for £90m for a 1.2m sq ft logistics hub which is being built for his retail business.
Last year, shed investment transactions reached £3.1bn, the second-highest year on record and almost £1.5bn more than the long-term average of £1.6bn, according to Savills.
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