Legal and General forward funding deal
A team effort between the UK Industrial Investment and Agency teams saw Cushman & Wakefield advise Legal & General on a £114m pre-let forward funding deal for a Waitrose distribution warehouse in Milton Keynes, marking the third largest ever single led distribution warehouse deal in the UK.
The lead came from Industrial Agency to the Industrial Investment team in late 2013 resulting in a solid early introduction to key client Legal & General.
The two teams put together a strong case to Legal & General on why this was a good opportunity and after three rounds of competitive bidding the deal was secured at a price of £114,050,000 showing a net initial yield of 4.64%.
The 938,449 sq ft distribution warehouse is currently being constructed by the developer/vendor, Gazeley, and completion is due at the end of November 2014. Waitrose have signed a 30 year pre-let with annual rental increases of between 1.5% to 2.5% pa.
Richard Peace led the deal from the Industrial CMG team with support from Mark Webster, Gordon Reynolds and Greg Cooper from the market leading Industrial Agency team.
Commenting, Richard Peace said: “This is a great deal for the Annuity Fund at L&G providing 30 years of secure income to Waitrose on a prime logistics unit with annual rental growth. Waitrose has been a rare covenant to secure in the market and this is one of the few opportunities in the UK to own a Waitrose distribution hub. We have been able to impress Legal & General with our knowledge of the location and site due to our recent work for John Lewis who occupy over 1,000,000 sq ft on the park.”