Avison Young completes two major logistics deals in the Midlands25 Feb 2021
Grade A lettings in a fast-moving warehouse market.
The global pandemic has triggered a huge growth in ecommerce and the UK logistics market is experiencing record levels of demand. Avison Young has recently completed two major logistics deals in the Midlands, in Derby and Lichfield.
Derby 370, Derby Commercial Park
Acting on behalf of Panattoni, Avison Young, has secured a letting of Derby 370, a 370,942 sq ft distribution warehouse facility, to Alloga UK, a specialist healthcare logistics group.
Derby 370, which is due to open mid-2021, will be used by Alloga UK as a further storage and distribution facility in line with its company’s strategy for growth and continued investment.
CBRE, Burbage Realty and Avison Young acted as joint agents on the scheme. JLL acted for Alloga UK.
Panattoni will be starting on-site in Q1 2021 at the adjacent site on Derby Commercial Park, which will bring a further 515,000 sq ft to the market. Derby 515 is earmarked for completion in Q4 2021.
Fradley 437, Lichfield
Avison Young, acting on behalf of AEW, has also secured a letting of a new speculative unit comprising 437,000 sq ft to fashion retailer ASOS on a 15-year lease.
The warehouse forms part of the joint venture between AEW and Allianz Real Estate launched in February 2019, focused on develop-to-core opportunities in prime locations within the UK logistics sector.
Fradley 437 is the last major development plot on Fradley Park Industrial Estate at Lichfield, whose occupants include Tesco, DHL, Screwfix, Tile Giant, Newell and Great Bear Distribution.
MWRE and Avison Young represented the landlord and Knight Frank represented ASOS.
Robert Rae, Principal & Managing Director, Avison Young, said:
“We are pleased to have acted in these Grade A lettings a in a fast-moving warehouse market.
In contrast to some other commercial real estate sectors, the UK industrial and logistics market has experienced record levels of activity. Take-up of large grade A warehouses in 2020 amounted to 38.4 million sq ft, 40% up on the 5-year average.”