Panattoni, the second-largest distribution developer in the US after ProLogis, has entered the UK market for the first time.
The California-based private company will be funding Equity Estates’ purchase of the 9.6-acre former Paynes Poppets factory on Croydon Road, Beddington.
According to sources, it has been looking at “a few opportunities” in both the UK and continental Europe, and is seeking to expand out of its home territory.
The building in question has been on the market since October 2000 when Northern Foods moved production to Leicester after acquiring a confectionery factory in the city from Nestlé.
Sources said the site would be sold for around £1m per acre. Industrial rents in the area are typically £8-£8.50 per sq ft.
Northern Foods was hoping to sell the site for housing, but Sutton council wanted to retain the site for industrial and distribution use. Equity will be building a number of small industrial units on the site, as well as a car showroom.
There has been a US presence in the UK distribution market ever since ProLogis purchased Kingspark in 1996. The transatlantic share was increased when Wal-Mart bought ASDA, Gazeley’s parent, in 1999.
King Sturge acted for Northern Foods; Holley Blake acted for Equity Estates.
Serving the big brands
Panattoni was founded in 1986 by Carl Panattoni and is still privately owned. It has constructed, on average, almost 10m sq ft of industrial, office and retail space each year in the US, and has offices in 19 North American cities.
Its clients include some of the biggest names in US industry, such as Coca-Cola, Amazon, Ford and Hewlett-Packard, as well as other familiar multinational brands.
References: EGi News 28/02/05
