AEW UK Investment Management LLP (AEW) has entered into a five-year lease with a leading online retailer for the development of its 512,500 square foot logistics warehouse near Wakefield.
The development is part of the separate Allianz Real Estate account managed by AEW launched in February 2019.
It focuses on core development opportunities in prime UK locations. The unit is currently under construction and is expected to be completed in June 2021. When completed, the company’s portfolio of three sites will be fully leased.
The unit, named Wakefield 515, will have more than 80 dock-level doors and parking spaces for more than 229 heavy goods vehicles as well as a rainwater harvesting system.
AEW manages the Allianz-owned segregated account vehicle, which focuses on financing the speculative development of units of 200,000 square feet or larger in prime locations across the UK.
This is the third rental in the portfolio and the first pre-rental agreement. Following the recent lease agreement for the East Midlands 525 distribution center with Buy It Direct, the occupancy of the entire portfolio will be 100% once the lease begins in June.
Spencer Corkin, Director of Acquisitions at AEW, said: âWe are pleased to announce the third lease of our logistics business with Allianz Real Estate.
âThe demand for Class A storage remains strong, particularly in West Yorkshire, where supply at the wider end is limited.
“We now have a fully occupied portfolio of Category A logistics facilities and we will look to expand our footprint by continuing to do speculative Big Box developments in well established but undersupplied locations across the UK.”
Charlie Royle, Executive Director of Asset Management at AEW added, âThe development of Wakefield 515 is being completed to the highest standards and specifications and is on schedule and on budget.
“We are very pleased to have entered into a pre-lease with another exemplary occupant in the logistics industry and look forward to completing the development and welcoming them to Wakefield 515.”