Equites to develop new Amazon centre

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Equites to develop new Amazon centre

Published Date: 2020-12-02 | Source: Stephen Gunnion | Author: Stephen Gunnion

Equites to develop new Amazon centre

The distribution centre is the second development deal to arise from its partnership with UK property developer Newlands.

Equites Property Fund has reached a deal with online retail giant Amazon to develop a distribution centre in the UK as it continues to diversify its property portfolio to mitigate the risk of its emerging-market focus.

The development, at Peterborough in Cambridgeshire in eastern England, will cost an estimated £41.3 million (R850 million) including £7.32 million for the land. It will be the second development deal to arise from its partnership with UK property developer Newlands, which is aimed at acquiring land and funding development opportunities using Equites's financial resources. Equites International owns 60% of the joint venture.

Equites said on completion it would wholly own the new facility. Based on the initial annual rent of £2.35 million, the total development cost reflected an initial yield of 5.68% after payment of all costs, fees, and profit shares. It's being built on the well-established Peterborough Gateway logistics park, which it said provided excellent access to the national motorway network and access to a large labour pool.

Amazon has signed a 15-year triple net, fully repairing and insuring lease which will commence on the estimated development completion date next October. Amazon recently reported that they had invested over £18 billion in the UK economy since 2010 and intended to continue investing in the region.

Equites's shares closed unchanged at R17.24 yesterday.





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