WP Carey Inc has acquired an approximately 100,000m² Class-A logistics facility for €162.6m (£141m), including transaction fees. Located in Solihull, UK, the facility is leased for a term of 30 years to Jaguar Land Rover Limited.
The brand-new property is a Class-A, cross-docked logistics facility with a BREEAM "Very Good" environmental rating and up to 50-foot (15-meter) clear heights, enabling Jaguar Land Rover to improve its operations and production resilience. The facility is located adjacent to Jaguar Land Rover's largest UK manufacturing plant and is integral to the supply of auto parts to the plant. Jaguar Land Rover is also making significant investments into automation and fit-out of the facility.
Developed by Prologis, the facility is located at the centre of the UK's transport network in the "Golden Triangle" of logistics, in proximity to the arterial M42 motorway, Birmingham Airport and Birmingham International Railway Station, as well as major urban centres, which provide access to a deep labour pool.
In addition to the facility's BREEAM environmental rating, it operates at the highest level of energy efficiency with an EPC "A" energy rating. Jaguar Land Rover has announced plans to produce electric versions of all vehicle models by 2030, with Jaguar specifically becoming electric-only by 2025. Jaguar Land Rover has also been certified as carbon neutral by the Carbon Trust for U.K. manufacturing and product development. The company will become a net-zero carbon business across its supply chain, products and operations by 2039. The facility is leased for a term of 30 years with inflation-based rent escalations.
Gino Sabatini, Head of Investments, W. P. Carey said: "We are thrilled to build on our year-to-date acquisition momentum and add another high-quality logistics asset to our portfolio. Since opening our London office in 1998 and completing our first investment in the UK in 1999, we have continued to grow our market expertise and reputation as a reliable partner for companies and developers alike."
Karolis Adlis, Senior Vice President, Investments, W. P. Carey said: "Driven by the rapid growth in e-commerce and fulfilment needs, demand for UK logistics assets continues to exceed supply. As such, we are thrilled to announce our acquisition of this bespoke, Class-A facility built to high environmental and operational standards on an attractive basis. The facility is located in the centre of the UK's transport network with 80% of the UK population reachable within a four-hour drive."
Alan Sarjant, Senior Vice President, Capital Deployment & Leasing, Prologis UK said: "Working with our customers to find the best outcome for their current and future business ambitions is an important part of what we do and today's announcement marks the culmination of a customer-led development project designed to deliver long-term benefits for Jaguar Land Rover."