10 July 2020

A 515,000 sq ft logistics facility in Yorkshire has been bought by AEW.

Located at the junction of the A1(M) and J33 of the M62, Wakefield 515 covers 28 acres and comprises grade A space with parking for 395 cars.

Work is expected to start on site in July with completion targeted for Q3 2021.

Bought from Caddick Developments, Wakefield 515 forms part of AEW's develop-to-core UK logistics venture with Allianz Real Estate. Its acquisition follows the announcement earlier this year of the practical completion of Fradley 430, a 430,000 sq ft logistics facility in the East Midlands.

Nick Winsley, managing director and head of investments at AEW UK Investment Management, said: "With the UK demonstrating historically strong take-up, occupancy levels and rental growth and with very little new grade A supply in the Yorkshire market over 200,000 sq ft, the timing is right for this development at Wakefield 515.

"This is our third project since we launched last year and we continue to seek further opportunities in established core logistics locations throughout the UK."

Kari Pitkin, head of business development for Europe at Allianz Real Estate, added: "The UK offers excellent opportunities on a select basis and we will continue to target those offering long-term, stable cash returns.

"Looking forward, we expect the logistics sector to continue benefitting from strong market fundamentals such as the continued growth of online shopping. We see this transaction as an excellent opportunity to capitalise on that."

AEW was represented by Gerald Eve and Mishcon de Reya.