Intermediate Capital Group (ICG) has agreed to forward fund a 2.94m sqft UK logistics park on behalf of its sale and leaseback fund.

ICG is funding the global parts logistics centre at Mercia Park located at North-West Leicestershire, constructed by IM Properties and leased to Jaguar Land Rover.

The alternative asset manager said the transaction represents Europe’s largest-ever single occupier build-to-suit transaction with ICG partnering with developer IM Properties to deliver the scheme on 20-year leases for each of the five units.

The units will be completed on a phased basis with the last unit due to complete in September 2022.

ICG launched its sale and leaseback strategy in 2019 in recognition of the growing market opportunity, particularly in Europe.

Chris Nichols, head of sale and leaseback at ICG said the fund is actively seeking real estate investment opportunities across Europe.

“We anticipate making additional investments by the end of the first quarter of 2021 by which time we expect to have acquired circa €1bn of mission-critical investments in the UK, Germany, France, the Netherlands, Spain and Northern Europe.”

Kevin Ashfield, UK development director at IM Properties said: “We are delighted to be partnering with ICG and remain committed to delivering this sustainable, high quality, bespoke global logistics centre for Jaguar Land Rover.

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