US-based net lease REIT W.P. Carey has acquired an approximately 1.1 million-square-foot Class-A logistics facility in Solihull, U.K for $195 million (£141 million).
The 100,000-square-meter logistics facility is leased for a term of 30 years with inflation-based rent escalations to Jaguar Land Rover Limited.
The brand-new structure is a Class-A, cross-docked logistics facility with a BREEAM “Very Good” environmental rating and up to 50-foot (15-meter) clear heights, enabling Jaguar Land Rover to improve its operations and production resilience.
The facility is located adjacent to Jaguar Land Rover’s largest U.K. manufacturing plant and is integral to the supply of auto parts to the plant. Jaguar Land Rover is also making significant investments into automation and fit-out of the facility.
Developed by Prologis, the facility is located at the center of the U.K.’s transport network in the “Golden Triangle” of logistics, in proximity to the arterial M42 motorway, Birmingham Airport and Birmingham International Railway Station, as well as major urban centers, which provide access to a deep labor pool.
“We are thrilled to build on our year-to-date acquisition momentum and add another high-quality logistics asset to our portfolio. Since opening our London office in 1998 and completing our first investment in the U.K. in 1999, we have continued to grow our market expertise and reputation as a reliable partner for companies and developers alike,” said Gino Sabatini, Head of Investments, W.P. Carey.
“Driven by the rapid growth in e-commerce and fulfillment needs, demand for U.K. logistics assets continues to exceed supply. As such, we are thrilled to announce our acquisition of this bespoke, Class-A facility built to high environmental and operational standards on an attractive basis. The facility is located in the center of the U.K.’s transport network with 80% of the U.K. population reachable within a four-hour drive,” added Karolis Adlis, Senior Vice President, Investments, W.P. Carey.