Freehold £101m deal sealed for Cheshire auto parts distribution center
A £101million deal has been struck for the freehold sale of a Cheshire site to serve as a parts distribution center for car giant Stellantis
The commercial property developer, Stoford, has exchanged contracts with the manager of Frasers Logistics & Commercial Trust – FLCT and the manager of FLCT, the manager of the REIT – on the sale of the property to be developed at the Ellesmere Port complex.
FCLT has acquired the full ownership logistics development on a 14.1 hectare site at West Road, Hooton Park Airfield for total consideration on a completed basis of £101 million.
The term financing investment will see FLCT finance the development of the new 668,000 square foot parts distribution center in the UK which has been pre-leased to Peugeot, a subsidiary of global automaker Stellantis Group which operates the site of nearby Vauxhall car production, which is set to switch to producing a range of electric utility vehicles.
Stoford has obtained 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 net zero carbon in operation for base construction work.
Delivery of the new building is scheduled for the second half of 2023.
Dan Gallagher, Co-Managing Director of Stoford, said: “We are extremely pleased to partner with FLCT on the development of this first-class facility at Ellesmere Port. This is a significant investment that recognizes both the quality of the program and its strategic importance within an excellent distribution venue.
“We worked closely with Stellantis to design a modern distribution building with industry-leading sustainability credentials. This will create many new jobs and ensure Hooton Park’s longevity as an important job site.
Robert Wallace, Managing Director of the REIT Manager, said: “The Term Finance 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 15-year lease agreement with Peugeot, a subsidiary of global automaker Stellantis Group, the property will serve as a national distribution center when completed.”
M1 Agency acted for Stellantis Group and Stoford on the leasing and investment sale and Colliers acted for FLCT.