SEGRO is pleased to announce that it has exchanged contracts to acquire a modern distribution warehouse in Burton-Upon-Trent for £18.1 million (approx. €21.3 million). This marks another step forward with SEGRO's strategic objective to expand its logistics platform in core markets.
The asset, developed in 2008, comprises 287,000 ft² (approx. 26,700 m²) of high specification warehousing and 16,000 ft² (approx. 1490 m²) of office space. It is situated on the Centrum 100 Distribution Park which benefits from its position on the A38, with excellent links to the M1 and M6 motorways. This distribution park is home to blue chip names including Argos, Boots, B&Q, Coors, DHL, Hobbycraft, Marmite, Palletforce, Pirelli, Rolls-Royce, Unilever and Waterstones.
From 1 August 2013, the warehouse will be occupied by Clipper Logistics Group on a 10 year lease. Clipper is a UK logistics company which services a wide range of retail clients such as John Lewis, Harvey Nichols and Asda. It will use this building for a major new contract with fashion retailer, SuperGroup Plc, to supply the Group's national Superdry retail outlets and to support fulfillment of the Group's internet operations, both in the UK and internationally, as the business continues to grow.
The use of distribution space for e-commerce is becoming an increasingly prevalent theme for our warehouses across the portfolio. We are working with a growing range of retailers, third party logistics providers and parcel courier companies to accommodate their space requirements for local, national and international distribution driven by internet sales, alongside more traditional routes to market.
Completion of the purchase is scheduled for 1 August 2013, upon Clipper's take-up of its lease on the premises.
Commenting, Phil Redding, SEGRO's Chief Investment Officer, said:
"This transaction provides an excellent opportunity to continue building our portfolio of prime 'big box' logistics assets in key transportation hubs and corridors. SuperGroup joining the existing concentration of leading retailers in Centrum 100 Distribution Park reinforces the attraction of this locality as an ideal position for retailers to service their national store networks and, increasingly, online orders, either directly or via local urban distribution warehouses providing last mile delivery."