The funding, a net initial yield of 6%, is for the construction of three Grade ‘A’ distribution warehouses totalling 53,000 m2 at Imperial Park, Siskin Parkway West in Coventry.
M&G Real Estate will acquire the 11.7 hectare site, adjacent to Coventry Airport, subject to detailed planning permission, and will fund the development, which will be carried out by Rigby Group with Evander Properties acting as development manager.
Imperial Park is strategically located just south of Coventry, about 10 kms from Junction 2 of the M6, a region where the logistics sector has seen rents steadily increase over the past year. FSP and MWRE acted on behalf of M&G Real Estate, Colliers acted for Rigby Group.
Upon completion, the site will comprise three new units of 32,500 m2, 15,300 m2 and 5,600 m2 respectively, satisfying occupier requirements for high quality and well-located warehouses with competitive accessibility to the UK’s regions and major cities.
Paul Crosbie, head of logistics and Industrial at M&G Real Estate, commented: 'The demand/supply dynamic for Grade ‘A’ industrial space in the West Midlands remains compelling. Coventry benefits from an excellent and improving road network enabling efficient delivery times; together with a skilled and flexible local labour force which make it a favoured location for a variety of different occupiers. The units will be designed to achieve a BREEAM rating of ‘Very Good’ and an EPC ‘A’ rating.
'This investment fulfils our objective of creating core real estate in prime locations which will benefit from rental growth over the long term. This transaction enhances our existing £2.3 bn exposure to the sector and follows other speculative developments at Optimus Point, Leicester and Logistics North in Bolton. Together with Coventry, this will comprise almost 130,000 m2 of prime logistics assets to be completed over the next 15 months. M&G Real Estate is committed to investment for long term growth across the UK.'
M&G is a part of Prudential plc, which has over £500 bn of assets under management and is one of the largest providers of long-term finance in the UK, including more than £50 bn invested in UK infrastructure and property across a range of sectors.
M&G provides €64m funding for Coventry warehouse development
UK institutional investor M&G Real Estate is committing £50.5 mln (almost €64 mln) to the speculative development of a logistics hub in the central English city of Coventry.
