Panattoni, funded by Barings, the diversified real estate investment manager, on behalf of its second European real estate value-add fund (BREEVA II), has bought a fully consented site from Mulberry Developments, on which it will deliver a cross-docked logistics property which it says will be the largest-ever speculative logistics development in the north of England.
The scheme will comprise a single unit of 770,000 square feet, with the option to buy the remainder of the 65-acre site to allow for the delivery of a further 500,000-square-foot unit. The property will target a BREEAM Outstanding certification and EPC ratings of A for the warehouse and A+ for the office element. The price paid has not been disclosed.
The site is the second phase of Mulberry Logistics Park Doncaster. The first phase is occupied by Eddie Stobart.
The two-phase development will be called Panattoni Central. Practical completion of the first building is expected in September 2025. Winvic Construction has been appointed as the contractor. The remaining 27-acre plot will be marketed on a build-to-suit basis.
The site is located one mile from Junction 34 of the A1(M), giving access to the M1, M18 and M62 motorways, providing access to the north and south of the UK. The scheme also has access to the ports of Hull, Immingham and Grimsby, while London can be reached in less than three hours, and Doncaster Rail Freight Terminal is 12 miles away.
Panattoni said it remains focused on the big box market, where there is a scarcity of supply and strong demand for units of 400,000 square feet and above.
Dan Burn, head of development North West & Yorkshire at Panattoni, said in a statement: "This is a fantastic opportunity for us to acquire a prime logistics site in an established location by the A1(M). The development provides us with the opportunity to capitalise on the dearth of supply of XXL units across the country."
The transaction is the sixth acquisition that Barings has completed in the European logistics market this year which includes two other logistics property transactions on behalf of BREEVA II, at Mantua in Italy and in Lisbon in Portugal. Barings, on behalf of BREEVA II, has also recently achieved practical completion on its Momentum London site which comprises almost 400,000 square feet of urban logistics in Rainham, East London.
Henry Marlow, director, UK Real Estate Acquisitions, at Barings, said in a statement: “The ability to deliver a near 800,000-square-foot unit provides a rare and extremely attractive opportunity in a market segment which is particularly devoid of supply but contrasting with a healthy number of current tenant requirements."
Panattoni was advised by Cushman & Wakefield and Mulberry Developments was advised by M1 Agency.
(This story has been updated to confirm Barings is funding partner for Panattoni.)