Wednesday, February 28, 2024

AEW agrees warehouse lease with ASOS

UK logistics

The warehouse forms part of the joint venture between AEW and Allianz Real Estate, focused on develop-to-core opportunities in the UK logistics sector

AEW has signed a 15-year lease with global online fashion retailer, ASOS, for a 437,000 sq ft warehouse located at Fradley Park, Lichfield in the West Midlands.

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 achieved Practical Completion in March of this year. The high-spec site benefits from 15 meter eaves height, 100 metre yard and a BREEAM rating of ‘Very Good’. It is the last major development plot on Fradley Park Industrial Estate at Lichfield, which is an established location for logistics distribution centres occupied by companies including Tesco, DHL, Screwfix, Tile Giant, Newell and Great Bear Distribution. In addition, it sits at the heart of the country’s motorway network being 4.5 miles from T4 and T5 of the M6 Toll Road. Located on the A38, it has excellent access to the M1, M42, M40, M6 and A50 and is close to both Birmingham International and East Midlands airports.

Following this letting, there remains one unit under development, 515,000 sq ft at J33 of the M62 in Wakefield, and only one vacant unit in the portfolio – EMDC 525, which totals 525,000 sq ft, at J24A of the M1 in the East Midlands, where there is a good level of tenant interest.

Nick Winsley, Managing Director and Head of Investments at AEW UK Investment Management, says: We are delighted to have secured ASOS as a tenant at this key location, as it continues to grow its business across the world. There continues to be strong demand for Grade-A warehousing, where supply at the larger end is more limited and we look forward to continuing with our funding programme in the new year.

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