Leading commercial property developer, Stoford, has exchanged contracts with the manager of Frasers Logistics & Commercial Trust (“FLCT” and the manager of FLCT, the “REIT Manager”), on the sale of a property to be developed at the Ellesmere Port complex.
FCLT has acquired the freehold logistics development on a 14.1 hectare site at West Road, Hooton Park Airfield for a total consideration on a completed basis of £101 million.
The forward funding investment will see FLCT fund the development of a new 668,000 sq ft UK parts distribution centre which has been pre-let to Peugeot, a subsidiary of the global automaker Stellantis Group.
Stoford gained planning approval for the construction of the new facility in May 2022, which will be built to BREEAM “Excellent” and an EPC rating of ‘A’ . It will be certified as net zero carbon in operation for the base build works.
The new building is programmed for completion in the second half of 2023.
Dan Gallagher, Joint Managing Director, Stoford said: “We are extremely pleased to be partnering with FLCT on the development of this first class facility at Ellesmere Port. This is a significant investment that recognises both the quality of the scheme and its strategic importance within an excellent distribution location.
“We have worked closely with Stellantis to design a modern distribution building with industry leading sustainability credentials. It will create many new jobs and ensure the longevity of Hooton Park as a significant employment site.”
Robert Wallace, Chief Executive Officer of the REIT Manager, said: “The forward funding acquisition opportunity presents an excellent opportunity to add a state-of-the-art logistics facility to FLCT’s growing UK logistics and industrial portfolio. With a committed 15-year lease term to Peugeot, a subsidiary of the global automaker Stellantis Group, the property will serve as its national distribution centre upon completion.”
M1 Agency acted for Stellantis Group and Stoford on the leasing and investment sale and Colliers acted for FLCT.