Barings to forward-fund Omega asset
The investment manager has completed a deal to forward-fund a 309,000 sq ft logistics facility at the Warrington distribution hotspot.
Barings is acting on behalf of its pan-European logistics joint venture PELV.
The site has planning permission for a warehouse built to a high specification, including an EPC A certification, electric vehicle charging and photovoltaic panels, and will target leading ESG credentials, including BREEAM Excellent.
At 575 acres, Omega now includes industrial occupiers including Brakes, Asda, The Hut Group, Royal Mail, Amazon, Evri (Hermes Parcelnet), Travis Perkins, Gousto and Iceland.
The deal follows a Barings venture into Warrington in July, when the firm acquired a portfolio of eight logistics assets from NFU Mutual, including a 129,000 sq ft timber frame modular factory let to Countryside Properties at the Gemini business park.
Darren Hutchinson, managing director and head of UK real estate transactions at Barings, said: “For firms like Barings where we have the investment to secure strong deals as well as the on-the-ground expertise and global insights required to identify them, we believe there are selective opportunities at play in this market.
“Where we feel assets are priced accurately and offer real potential for us to bring out further value, we will explore them accordingly. This site at Omega West is one such opportunity and is an excellent addition to our portfolio.”
David Milloy, managing director of Miller Developments, said: “We look forward to working with the Barings team as we move into the construction phase.
“Notwithstanding difficult market conditions, Barings’ decision to fund unit 2 speculatively is testament to Omega being viewed as the premier business park of its type in the North West. The building will be constructed to a very high specification and I am sure it will be of interest to a wide range of occupiers.”
