Legal & General Property (LGP) has forward funded a new major distribution warehouse at Magna Park in the English town of Milton Keynes.
Legal & General Property (LGP) has forward funded a new major distribution warehouse at Magna Park in the English town of Milton Keynes.
The financing represents a total of investment of £114 mln (€145 mln), representing a net initial yield of 4.64%.
Pre-let to Waitrose Limited on a 30 year term, the 938,449 sq ft (87,185 m2) unit is being developed by logistics developer-operator Gazeley. Waitrose’s parent company, John Lewis, already occupies two warehouses on the park, totalling over 1.3 million sq ft.
Purchased on behalf of its annuity fund, Legal & General will be funding the development over the construction period.
The development, which is currently on site, is due for completion in November 2014 and will provide a new distribution warehouse, including ancillary offices arranged over three levels, and parking for 530 cars. The development is targeting a BREEAM rating of 'Excellent'.
Situated on the east side of Milton Keynes, the park totals 220 acres and has planning consent for 4.4 million sq ft of distribution accommodation. To date Gazeley has delivered 2.07 million sq ft of buildings for River Island, John Lewis and Barrs Soft Drinks.
Cushman & Wakefield advised LGP, while JLL, Savills and Burbage Realty acted as joint agents for Gazeley.