Real estate investment manager Barings has acquired a prime logistics development site in the UK on behalf of its second European real estate value-add fund (BREEVA II).
The fully consented site, purchased from Mulberry Developments, will see the development of a cross docked logistics property, scheduled for completion in September 2025.
The scheme, near Doncaster, will comprise a single unit of 770,000 ft2 (71,500 m2), with the option to acquire the remainder of the 65-acre (26 ha) site to allow for the delivery of a further 500,000 ft2 unit.
The property will be delivered to market leading sustainability credentials, targeting a BREEAM Outstanding certification and EPC ratings of ‘A’ for the warehouse and ‘A+’ for the office element.
Situated in a prime location less than one mile from Junction 34 of the A1(M), giving access to the M1, M18 and M62 motorways, thereby providing access to the north and south of the UK.
The scheme also benefits from quick access to the ports of Hull, Immingham and Grimsby, while London can be reached in less than three hours, and Doncaster Rail Freight Terminal is under 12 miles away.
The transaction is the sixth acquisition that Barings has completed in the European logistics market this year which includes two further logistics property transactions on behalf of BREEVA II, at Mantua in Italy and in Lisbon in Portugal.
Barings, on behalf of BREEVA II, has also recently achieved practical completion on its Momentum London site which comprises almost 400,000 ft2 of urban logistics space in Rainham, East London.
Henry Marlow, director, UK real estate acquisitions, at Barings, said: 'The ability to deliver a near 800,000 sq ft 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 7 million ft2.
'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.'
