Allianz Real Estate, acting on behalf of several Allianz group companies, has successfully completed the original commitment of EUR 290 million related to its develop-to-core logistics vehicle focused on Grade A speculative assets in partnership with sector specialist AEW.
The forward acquisition of Frontier Park, a 760,000 sq ft logistics facility in the UK, marks the fourth acquisition for this venture since the partnership alongside AEW was announced in 2019. The three other UK assets have been successfully developed and are currently fully leased to prime occupiers.
Logistics is a high-conviction investment theme for Allianz Real Estate. The venture with AEW has enabled Allianz Real Estate to rapidly diversify into the UK logistics sector – a major growth market that allows for further expansion given the lack of suitable assets.
The acquisition of Frontier Park, following properties in Lichfield, Castle Donnington and Wakefield, provides further geographical balance to the venture and a footprint in one of the UK’s key regional distribution locations. In line with the decarbonization targets of the venture partners, all assets incorporate market-leading specifications, including BREEAM ‘Very Good’ energy certification and EPC ‘A’ energy efficiency.
As of September 2021, Allianz Real Estate’s global logistics portfolio had grown to EUR 10.3 billion in AUM – up by 17% year-on-year – with significant deals announced across 2021 as the firm catered for record demand for prime assets.
Frontier Park, in the city of Milton Keynes, is an established location for warehousing distribution. It sits between London and Birmingham at the heart of the country’s motorway network. Set to complete in the third quarter of 2023, Frontier Park is one of the largest logistics developments in the region consisting of nine Grade A units, with one ‘big box’ building of 370,000 sq ft complemented by eight mid-sized units.
Built in a single phase, it will meet the highest technical and ESG standards. Frontier Estates, a privately owned property investment and development company, is expected to begin work on site in the summer of 2022.
The development and ESG profile of the park supports Allianz Real Estate’s decarbonization program and the aim to reduce carbon emissions across its portfolio by 25% by 2025 and be carbon net-zero by 2050. It will encompass Carbon Risk Real Estate Monitor pathways, aligned with the requirements of the Paris Agreement to limit global warming to 1.5°C.
Source : Company