Goodman, a leading global provider of industrial and business space, will commence development of a pre-let 43,484 m² regional distribution center (RDC) at Andover Commercial Park (formerly Andover Airfield), for The Co-operative Group on a 20 year lease. Goodman has also transacted the forward funding and acquisition of this development with Legal & General Property (LGP)for £47 million (approx. 53.1 mln.). This announcement follows the receipt of planning approval by Test Valley Borough Council on 28 January 2010.
Following its acquisition of the Somerfield supermarket chain in 2009, the new warehouse will enable The Co-operative Group to reshape its distribution network in this part of Southern England.
Charlie Walker, Senior Fund Manager at Legal & General Property, comments: "This is an exceptional and rare investment opportunity and we are very pleased to be working with a specialist partner such as Goodman. With a high spec design, excellent sustainability credentials, strong logistics location and indexation through the lease, the asset, ticks all the boxes for us."
Goodman's Group Chief Executive Officer, Greg Goodman, said, "This significant development is one of the largest pre-let transactions to be announced in the UK over the last 12 months and we are pleased to be undertaking it on behalf of The Co-operative Group. We are experiencing renewed customer and investor demand in the UK and across our markets around the world. This transaction demonstrates our ability to successfully deliver on our pre-let and pre-funded development strategy, with high quality investment partners such as LGP."
Andover Commercial Park extends to 100 acres with the potential to accommodate a further 1.2 mln. ft² of development for a mix of uses including distribution, office, hotel and retail. The location provides excellent access to London and the UK's motorway network and benefits from good access to a skilled local workforce. Goodman will shortly commence marketing the site, with fully serviced plots available by the end of the year.
Goodman was represented by Savills and Carter Jonas, M3 acted for LGP and Thomas Round acted for The Co-operative Group.