Gazeley buys from RREEF, Barwood

Global logistics space provider Gazeley has announced the purchase of a 405,000 m² site in the British Midlands from Barwood Developments and Deutsche Bank's RREEF funds for an undisclosed amount. The site has outline planning grants for 140,000 m² of logistics space. The company hopes to commence redevelopment of the site at the end of 2008. The scheme is expected to have a total estimated value of £125mln (EUR 158mln).

'This deal marks our commitment to expansion, our ability to secure key logistics sites as well as our confidence in the region and wider UK market. We are already in discussions with a number of potential occupiers,' said Nick Cook, Gazeley’s development director.

As well as include a number of environmental measures in the development, Gazeley said it will seek to ensure that all design concepts will deliver annual operating cost savings for all occupiers at the site through reduced energy consumption. Gazeley already committed to develop eco-warehouses in France, where the company is currently building 30,000 m² in Beaulieu-sur-Layon and 36,000 m² in Magna Park Arras as part of a pilot project to study new sustainable development possibilities. The pilot project was launched in the country by the trade association of logistics companies, Afilog.

Gazeley was advised by CB Richard Ellis. Burbage Realty and M3 acted for Barwood and RREEF.