M&G Real Estate is to fund the construction of a 175,000 sq ft warehouse unit at Union Square in Trafford Park, Manchester, in a joint venture with Marshall CDP.
The purchase was made on behalf of the M&G property portfolio, managed by Fiona Rowley and deputy fund manager Justin Upton.
Marshall CDP will act as development manager on the scheme.
Rowley said: “We are seeing a real lack of supply in prime logistics assets in core locations throughout the North West. In Trafford Park, this is particularly true for units of 150,000-200,000 as a result of restricted land supply. However, tenant demand continues to strengthen and, consequently, the potential for rental growth from is anticipated to grow, too.
“Investor appetite remains strong for logistics assets. This is set to continue throughout 2015 as the industry plays an integral role in supporting the unprecedented growth currently being experienced by e-commerce. It shows no sign of let-up and so it is expected that investors will continue to move up the risk curve, ensuring prime logistics assets in core locations continue to be a priority for savvy investors.”
Joiner Cummings acted for M&G Real Estate and Marshall CDP was represented by Davies Harrison. Davies Harrison and B8 Real Estate are the letting agents on the scheme.
