Deal Points To Continued Confidence Amongst Investors In Retail Distribution

By David Shirt

National law firm Irwin Mitchell's real estate team has advised key client Gazeley on the forward funding of a new unit at Magna Park, Milton Keynes to Aviva’s Lime Property Fund for a price in excess of £70 million.

The unit has been pre-let to John Lewis plc on a 30-year-lease and Aviva has acquired the land and will fund the construction of the building. Gazeley exchanged an agreement for lease with John Lewis plc in April 2013, which the Irwin Mitchell team also advised on. Practical completion of the building is expected around in early 2014. 
 
Magna Park in Milton Keynes is Gazeley's flagship logistics park and this development is Gazeley’s second for John Lewis at this site; its adjoining distribution warehouse being opened there in 2007. As part of the latest development, there will be a link bridge between the two units to facilitate John Lewis’s operations.
 
Louise Cartwright of Irwin Mitchell's Real Estate team, who advised Gazeley on both the letting to John Lewis and the sale to Aviva, said: "This is another excellent deal for Gazeley and is a positive sign of continued confidence amongst investors in the retailer distribution sub-sector where demand for buildings occupied by blue chip retailers such as John Lewis is high."

Irwin Mitchell's Head of Construction David Parton, assisted by Vanessa Greaves, advised on the construction aspects of the development.

Read more about Irwin Mitchell's expertise in relation to Real Estate and Construction