Panattoni delivers £100m Ocado deal
Panattoni has completed the sale of Ocado’s new logistics facility in Luton for around £100m.
The net initial yield is circa 3.00%, an indicator of where pricing is for prime assets in quality locations outside of London.
The 346,132 sq ft facility was speculatively developed by Panattoni and let to Ocado Retail, the joint venture between Marks & Spencer Group and Ocado Group, on a 20-year lease in September this year.
James Watson, Development Director at Panattoni, said, “It was a pleasure working with Ocado to deliver this new logistics facility. The price achieved for the investment sale reflects the prime location and quality of the building.”
The transaction completes Panattoni’s exit from the wider park at Luton, which is adjacent to the newly built junction 11a of the M1. The first unit of 69,000 sq ft was let to Deta Electrical on a 15-year lease and sold to CBRE Global Investors for £16m.
Panattoni was advised by Savills. The buyer was represented by Acre Real Estate