European real estate investment manager Europa Capital and developer Panattoni have signed a 630,000 sq ft (58,500 m2), 25-year pre-lease with Alliance Automotive Group (AAG), a distributor of passenger and commercial vehicle parts, at Rotherham logistics park in England.
AAG subsidiary Ferrari Piston Services (FPS), a distribution partner for a number of leading automotive brands, will occupy the space and is expected to commence its move into the property next summer with operations commencing in 2025.
89% of the site is now pre-let with construction of the facility, along with a smaller 80,000 sq ft unit, expected to complete in July 2023. The development is targeting a minimum Breeam sustainability rating of ‘Very Good’ and an EPC rating of ‘A’.
The property is owned by Europa’ value-add fund, Europa Fund VI.
Rachel Hanke, managing director and value-add fund manager at Europa Capital, commented: 'Despite current headwinds, securing a pre-let with a tenant such as AAG at an early stage of construction is a testament to the resolve of the asset management team and strength of the fundamentals in the sector, especially for high-quality assets such as the Rotherham logistics park. We continue to experience a good level of occupier interest in the remaining unit and are focused on letting up this space.'
Dan Burn, head of development, North West & Yorkshire, at Panattoni, said: ‘This major pre-let to AAG endorses our continuing commitment to a significant speculative development programme across the UK and our continued confidence in the logistics sector. We look forward to working with AAG over the coming months as we bring significant investment and employment opportunities to Rotherham.'
Letting agents are M1 Agency, Legat Owen and Knight Frank.
