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.”

To read the latest edition of the latest IPE Real Assets magazine click here.