Barings to forward fund Bolton sheds
Investment manager Barings has agreed to forward fund a £42.5m logistics warehouse development with Panattoni in Bolton, on behalf of a core investment strategy.
The project is being built on Wingates Industrial Estate. Once completed, it will provide around 358,500 sq ft of grade-A space across two units.
The first 77,800 sq ft facility has already been prelet to delivery company Hermes Parcelnet on a 15-year lease, and will be used as a parcel depot.
Investment manager Barings has agreed to forward fund a £42.5m logistics warehouse development with Panattoni in Bolton, on behalf of a core investment strategy.
The project is being built on Wingates Industrial Estate. Once completed, it will provide around 358,500 sq ft of grade-A space across two units.
The first 77,800 sq ft facility has already been prelet to delivery company Hermes Parcelnet on a 15-year lease, and will be used as a parcel depot.
The second property will offer 280,700 sq ft and will be developed speculatively. The entire project is expected to achieve BREEAM Very Good certification.
Darren Hutchinson, managing director and head of UK real estate transactions at Barings, said: “Demand looks set to continue growing as a result of Covid-19, which has expedited the shift to online.
“The preletting of one unit to Hermes has de-risked an element of the project and with a strong degree of occupier interest in the second unit already, we believe this development is well placed to capture the demand for grade-A stock in prime locations in the north-west of England.”
The deal is Barings’ sixth European logistics acquisition this year, bringing its investment volume in the sector to €300m (£271m). Another seven deals are under exclusivity. Last year, its logistics acquisition volume reached an equivalent of €600m.
Gunther Deutsch, managing director and head of real estate transactions in Europe at Barings, said its appetite for logistics in 2021 was “still very strong” and that it continued to target deals in the Nordics, Netherlands, Germany, UK, Italy, France and Iberia, with an investment target of €950m.
Knight Frank and law firm CMS advised Barings.
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