AEW with Allianz Real Estate has forward purchased the 760,000 sq ft Frontier Park logistics development in in Milton Keynes.
The acquisition means Allianz has now spent its original commitment of €290m (£243m) related to the develop-to-core logistics vehicle it launched with AEW in 2019.
Frontier Park is the fourth acquisition for the venture. The three other UK assets have been successfully developed and are currently fully leased to prime occupiers.
Frontier Estates, which will develop the Milton Keynes site for AEW, will submit plans for nine units, with the largest comprising 370,000 sq ft. The buildings will have up to 55m yards with clear haunch heights of 10-15m. The warehouses will be built to market-leading specifications with an EPC A rating and BREEAM Very Good certifications – in line with the portfolio decarbonisation targets of the venture partners – and substantial power availability up to 5MVA.
Work on site is expected to begin in the summer with practical completion due in spring 2023.
Spencer Corkin, director at AEW, said: “Milton Keynes is a key prime logistics and distribution location, with excellent transportation infrastructure and access to high-value markets across the UK and Europe. This project strategically broadens and diversifies our geographical footprint, providing exposure to a highly supply constrained environment with significant occupier demand.”
Hugues Braconnier, head of logistics at Allianz Real Estate, said: “Frontier Park represents the very best in the UK logistics sector and fulfils a tangible need for smart distribution infrastructure. The successful deployment of capital underscores the strength and quality of Allianz Real Estate’s sector approach in the UK and our strong desire to build on this momentum.”
AEW has appointed DTRE and Savills as joint letting agents. TT&G and Mishcon de Reya acted for AEW on the acquisition. DTRE, Sandstone Law and Memory Crystal acted for Frontier Estates.
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