CBRE Investment Management has acquired a 617,393sqft industrial warehouse that will become the new distribution hub for department-store retailer John Lewis & Partners.
Supermarket chain Tesco, which developed the facility in Milton Keynes in 1998, sold the building ahead of it being refurbished for its new tenant.
Milton Keynes is a favoured location for logistics occupiers, offering access to London, Cambridge, Birmingham and Oxford. The asset is situated adjacent to the A5 and Bletcham Way, which leads directly to the M1 motorway.
The warehouse has an energy-performance-certificate rating C and CBRE IM said it would work with John Lewis to improve the environmental performance of the asset.
Richard Dean, head of UK transactions and real estate execution at CBRE IM, said: “This transaction represented a rare opportunity to acquire an asset that is both income-producing and one that also offers future potential for upside through refurbishment and extension.
“Through our business plan we will also be able to elevate the asset’s ESG credentials in line with our strategic objectives. Milton Keynes is an attractive market for us, offering strong transport links and a central location that makes it highly appealing to occupiers.”
The deal takes CBRE IM’s European logistics assets under management to €14.8bn.
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