A property fund managed by Aberdeen Standard Investments has forward funded the development of a pre-let 361,000sqft industrial unit in northern England.
Standard Life Pooled Property Pension Fund has acquired the pre-let industrial and distribution unit at Logic Leeds from Muse Developments for an undisclosed sum. Muse will continue to develop the site which is expected to be completed by January next year.
The industrial unit is pre-let to electronics distributor Premier Farnell on a 20-year lease.
David Stewart, a fund manager at Aberdeen Standard Investments said: “This deal underlines our continued confidence in the UK logistics and distribution market.
“Development has already started on the unit, and we are looking forward to Premier Farnell moving in to occupy the site in early 2019, once works are completed.”
James Scott, development director with national developer and regeneration specialist Muse, said: “This is another significant milestone in the successful Logic Leeds story and it is exciting to be able to announce the sale of the Premier Farnell building to a high-profile investor.
“This is a significant investment deal, which demonstrates the buoyancy and strength of Yorkshire’s commercial property market. Aberdeen Standard Investments is a major international name, so it is excellent news that it has invested in Leeds.”
Launched in November 1984, Standard Life Pooled Property Pension Fund aims to provide long-term growth from a combination of income and capital growth by investing predominantly in prime UK properties.
Typically the fund invests in a mix of freehold and leasehold properties selected from across the retail, office, industrial and other sectors.