CBRE Investment Management (CBRE IM), on behalf of a fund it sponsors, has acquired a 617,393 sq ft industrial distribution unit let to John Lewis & Partners in Fenny Lock, Milton Keynes, from Tesco Distribution Ltd.
Milton Keynes is one of CBRE IM’s identified prime logistics locations in EMEA, benefitting from easy access to London, Cambridge, Birmingham and Oxford through its central location within England and position in the M1 Corridor. The asset is situated adjacent to the A5 and Bletcham Way, which leads directly to the M1.
Initially developed by Tesco in 1998, the asset is currently being refurbished by John Lewis for their occupation. With an EPC rating of C, CBRE Investment Management will work with John Lewis to improve the ESG credentials of the asset.
Richard Dean, Head of UK Transactions and Real Estate Execution at CBRE Investment Management, said: “This transaction represented a rare opportunity to acquire an asset that is both income-producing and one that also offers future potential for upside through refurbishment and extension. Through our business plan we will also be able to elevate the assets ESG credentials in line with our strategic objectives. Milton Keynes is an attractive market for us, offering strong transport links and a central location that makes it highly appealing to occupiers.”
“We are delighted to be expanding our relationship with John Lewis and look forward to supporting them in their online retail and logistics strategy in the coming years” added Rob Trevor, Logistics Customer Experience Lead EMEA, CBRE Investment Management.
CBRE Investment Management is a leading investor and operator in logistics with €14.8 billion assets under management* in Europe, a rental area of over seven million square meters across 11 countries.
CBRE Investment Management was advised by Chris Freer-Smith and Morgan Williams acted for Tesco.