Frasers Logistics & Commercial Trust (FLCT) is buying a UK parts distribution centre from Stoford in a £101m (€117m) forward funding deal.
UK commercial property developer Stoford, which announced the deal, said it is selling the pre-let 668,000sqft distribution centre being developed at the Ellesmere Port complex in Cheshire to the SGX-listed real estate investment trust.
The deal involves FCLT funding the freehold logistics development on a 14.1-hectare site at West Road, Hooton Park Airfield.
The asset, which is expected to be completed in the second half of 2023, has been pre-let to Peugeot, the French brand owned by automobile company Stellantis.
Dan Gallagher, joint managing director at Stoford said: “This is a significant investment that recognises both the quality of the scheme and its strategic importance within an excellent distribution location.
“We have worked closely with Stellantis to design a modern distribution building with industry-leading sustainability credentials.”
Robert Wallace, CEO of Singapore-based Frasers Logistics & Commercial Trust, said the forward funding acquisition opportunity presents an “excellent opportunity to add a state-of-the-art logistics facility” to FLCT’s growing UK logistics and industrial portfolio.
“With a committed 15-year lease term to Peugeot, a subsidiary of the global automaker Stellantis Group, the property will serve as its national distribution centre upon completion.”
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