European logistics real estate developer Panattoni and Barings have acquired a 65-acre site on the Nottinghamshire/Yorkshire border in the UK for a 1.2m sqft project.
IPE Real Assets understands that the site for the two-phase Panattoni Central A1(M) project on the Nottinghamshire/Yorkshire border, acquired from Mulberry Developments, will have a gross development value of around £200m (€235.7m).
Barings is making the investment on behalf of its second European real estate value-add fund (BREEVA II).
Panattoni said it intends to begin construction of the 770,000sqft logistics unit in northern England this autumn, adding that the asset is expected to be the largest speculative development of its kind in the region once completed in September 2025.
It said the remaining 27-acre plot, which already benefits from reserved matters planning consent for a 461,000sqft building will initially be marketed on a build-to-suit basis.
Dan Burn, the head of development in the North West and Yorkshire at Panattoni, said: “This is a fantastic opportunity for us to acquire a prime logistics site in an established location by the A1(M). The development provides us with the opportunity to capitalise on the dearth of supply of XXL units across the country.”
Henry Marlow, director of UK real estate acquisitions at Barings, said: “The ability to deliver a near 800,000sqft unit provides a rare and extremely attractive opportunity in a market segment which is particularly devoid of supply but contrasting with a healthy number of current tenant requirements.”
Rory Allan, managing director and portfolio manager at Barings, said: “Logistics continues to be a key conviction sector for Barings with its favourable macro drivers and this most recent acquisition will complement BREEVA II’s existing multi-jurisdictional portfolio which extends to over 7m sqft.
“Our focus continues to be on delivering best-in-class sustainable product, which remains in high demand from tenants and investors alike.
“The current market dislocation presents a compelling opportunity to deploy capital in prime locations at heavily corrected pricing and we are actively assessing further logistics investments in our preferred Western European markets of France, Germany, Iberia, Italy, the Netherlands, Nordics and UK.”
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