Amazon is to sign Europe's largest logistics prelet for what will be one of the sector's most revolutionary buildings. The e-tailer has agreed to take 2.2m sq ft at Roxhill and Port of Tilbury's 70-acre London Distribution Park in Essex, which will trigger the UK's biggest industrial investment deal.
It will be the first four-storey distribution centre in the UK. The development will be forward funded by Legal & General through its annuity fund, which buys long-leased property. The fund manager will pay £150m, reflecting a 5.25% yield. Amazon is signing a 20-year lease at a rent of close to £3.60 per sq ft. Legal & General's investment underlines its commitment to UK logistics and the confidence of institutional investors in a new generation of high-tech assets. Work started on site in September 2016 after planning was granted on 6 July.
The shed will be the largest and tallest warehouse in the UK at more than 70ft, with four floors, each just under 600,000 sq ft. It will also feature a mezzanine on the first floor.