Barings and Panatonni have acquired a logistics site near Doncaster from Mulberry Developments with planning permission for a single unit of 770,000 sq ft.
The joint venture partners intend to commence speculative construction of the unit in the autumn with practical completion expected in September next year. Winvic Construction has been appointed as the contractor.
They also has an option to acquire the remaining 27-acre plot at the site, which benefits from reserved matters planning consent for 461,000 sq ft of logistics space.
The site is situated less then one mile from junction 34 of the A1(M) and benefits from quick access to the ports of Hull, Immingham and Grimsby.
The JV partners are targeting BREEAM Outstanding and EPC ratings of A for the warehouse and A+ for the unit’s office element.
Henry Marlow, director of UK real estate acquisitions at Barings, said: “The ability to deliver a near 800,000 sq ft unit provides a rare and extremely attractive opportunity in a market segment which is particularly devoid of supply but contrasting with a healthy number of current tenant requirements.
Rory Allan, managing director and portfolio manager at Barings, added: “Logistics continues to be a key conviction sector for Barings with its favourable macro drivers and this most recent acquisition will complement BREEVA II’s existing multi-jurisdictional portfolio which extends to over 7m sq ft.
“Our focus continues to be on delivering best-in-class sustainable product, which remains in high demand from tenants and investors alike. The current market dislocation presents a compelling opportunity to deploy capital in prime locations at heavily corrected pricing and we are actively assessing further logistics investments in our preferred Western European markets of France, Germany, Iberia, Italy, the Netherlands, Nordics and UK.”
Dan Burn, head of development North West and Yorkshire at Panattoni, said: “This is a fantastic opportunity for us to acquire a prime logistics site in an established location by the A1(M). The development provides us with the opportunity to capitalise on the dearth of supply of XXL units across the country.”
Panattoni was advised by Cushman & Wakefield and Mulberry Developments was advised by M1 Agency.
