BNP Paribas REIM has exchanged on the forward purchase of Amazon’s latest fulfilment centre on behalf of an Asian investor. At a price in excess of €156m (£125m), the sale represents the largest lot size for a single-let distribution centre ever traded in the UK.
Located in Bardon, Leicestershire, the property will total in excess of 92,903m2 (1 million ft2) upon practical completion, which is anticipated to be in September 2016. Amazon has pre-let the unit on a 15-year lease with fixed increases as the retailer continues its UK expansion drive. The property is being developed by Mountpark in a joint venture with USAA.
Hugh White, head of national investment at BNP Paribas Real Estate, said: “As the UK investment market continues to evolve we are witnessing significant interest from international investors in logistics assets. These investors are attracted by the covenant strength, lease length and ever increasing growth in distribution driven, in part, by e-commerce. Effective logistics networks are now ever-more essential for retailers in order to meeting consumers’ need for convenience when shopping online.”
Logan Smith, head of pan-european logistics at BNP Paribas Real Estate, commented: "This transaction demonstrates BNP Paribas Real Estate’s ability to identify the best off-market opportunities and to match them with global investors via our platforms in Asia."
