The Standard Life Investments Long Lease Fund is investing £30m to forward fund the development of a new warehouse and distribution centre for Poundland in Wigan.
Poundland agreed a 20-year lease on the proposed 335,275 sq ft facility off the M6. The 19.6-acre site at M6EPIC was sold to Standard Life by Legal & General Property and DB Symmetry.
Developer Stoford has been appointed as the development partner for the project and will deliver the Webb Gray-designed building. Work is expected to start on site in September with anticipated completion in June 2016.
Richard Marshall, fund manager of the Standard Life Investments Long Lease Fund, said: “This acquisition increases the fund’s income stream that is linked to RPI and fixed increases to over 90%, helping our investors match their pension fund liabilities.”
Stoford joint managing director Dan Gallagher said: “Poundland has appointed Stoford as development partner to deliver its new distribution hub for the North West region, a project which we are very excited to be involved in. It marks a major investment in the region by the company and will generate around 800 jobs, which is great news for the area.”
Poundland’s head of portfolio management, Ben Wall, said: “Poundland continues to grow its estate rapidly with 60 new stores acquired in 2014/15 and a further 60 new stores planned for 2015/2016.
“This new North West distribution centre will provide a green high specification distribution hub for the North and ensure that as the store portfolio grows we can continue to deliver amazing value to our customers every day. The expansion of our existing warehouse space follows an extensive search. We are extremely pleased that the development of our new North West Regional Distribution Centre is in Wigan. As we continue to increase our store portfolio we will look to further expand our warehouse space in the future.”
Cushman & Wakefield advised Poundland.