Singapore-listed real estate investment trust (REIT) Frasers Logistics & Commercial Trust has agreed to acquire a prime freehold logistics development in Cheshire, North West England, UK for £101 million (S$171.7 million).
The property will sit on a 14.41-hectare site and will have a total lettable area of 667,185 sq ft (approximately 61,984 sqm).
The property will be developed by the vendor, Stoford, to high specification and sustainability standards and will be certified as net zero carbon in operation for the base build works.
Development of the property is expected to complete in the second half of 2023 and will be leased to Peugeot Motor Company Plc for a lease term of 15 years, with the property serving as its national distribution centre in the UK.
The lease will also benefit from five-yearly, upward-only rent reviews.
Robert Wallace, Chief Executive Officer of the REIT Manager, said, “The forward funding acquisition presents an excellent opportunity to add a state-of-the-art logistics facility to FLCT’s growing UK logistics and industrial portfolio. With a committed 15-year lease term to Peugeot, a subsidiary of the global automaker Stellantis Group, the Property will serve as its national distribution centre upon completion. The Property will be developed to high building and sustainability specifications and will meet BREEAM5 “Excellent” and EPC6 A rating.
“The Property will mark FLCT’s fourth logistics and industrial investment in the UK and is strategically sited in a well-established logistics and industrial precinct in UK’s North West, which will enable us to deepen FLCT’s presence in the attractive UK logistics real estate space, while supporting our objectives of delivering sustainable long-term value to our unitholders.”