John Lewis National Online Distribution Facility
Following a competitive pitch in September 2012 Cushman & Wakefield were appointed to advise the John Lewis Partnership in the acquisition of an expansion of the facility at Gazeley’s Magna Park, Milton Keynes. The facility was required to allow for further efficiency improvements onsite following their initial move to the location 5 years earlier. Of paramount importance was the fact that only the adjacent plot on Magna Park, Milton Keynes would suffice as the two buildings needed to be linked by an aerial bridge.
C&W undertook an aggressive review of the competing sites in the near vicinity that provided a base of information to allow a competitive discussion to take place with the developer, whereby they knew that the deal was theirs to lose but that the partnership would not be held to ransom on the site.
Over an intensive 12 week period, terms were agreed that aligned aspirations for both parties with John Lewis agreeing a base deal which would then give a further incentive payable upon funding by a third party so as to ensure that incentives were shared and aligned between both parties if the market was to improve.
The funding took place in an unparalleled period of yield compression within the UK industrial and logistics market that provided for a significant top up of rental incentives over and above the original offer from Gazeley due to market compression.