Rockspring secures John Lewis Partnership at its new Southampton urban logistics development

Dec 2017

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Rockspring Property Investment Managers LLP (“Rockspring”), on behalf of Rockspring TransEuropean Property Limited Partnership V (“TEP V” or “the Fund”), in conjunction with its development partner Peel Logistics Property (“Peel”), announces that it has pre-leased one of three units at its to-be-constructed 206,000 sq ft South Central logistics park in Southampton to John Lewis Partnership (“JLP”), the British department store operator.

TEP V acquired the site in 2016 as part of a broader Europe-wide urban and hub logistics strategy and is expecting to complete construction in mid-2018. Located adjacent to the M27 motorway, less than 3 miles from Southampton Port (the UK’s second largest container port) and a short drive from the city centre, the park will offer secure, grade A accommodation with a BREEAM Excellent accreditation.

The 46,000 sq ft letting to JLP is another boost following the recent 73,000 sq ft letting to Argos, the British catalogue retailer, at Rockspring’s Island Road logistics development in Reading. The firm has assembled a portfolio of similar properties totalling 1,751,108 sq ft across 6 countries since 2014. 

Mark Krol, Assistant Director at Rockspring commented:

“Securing such a high profile business as JLP so early in the process is a major achievement for the team and, we feel, provides a strong endorsement of both the location and the quality of the planned building. We hope to be able to announce further commitments in the very near future.”

Neil Dickinson at Peel Logistics Property commented:

“This leasing deal with John Lewis is another example of Peel Logistics Property’s capability in delivering high quality urban logistics facilities for leading UK occupiers. We look forward to welcoming other tenants to South Central as construction progresses.”

Launched in 2012 as a diversified, leveraged pan-European investment programme with a focus on office, retail and industrial properties in core western Europe (including the UK), TEP V is the fifth in Rockspring’s series of six TransEuropean Property Limited Partnerships. Fully invested with a portfolio of circa €700 million, and now in its maturity phase, the value-add fund’s strategy focussed on exploiting distressed capital market pricing and assembling a cash-flow generative portfolio that could be aggressively ‘managed to core’, utilising the firm’s Europe-wide platform and its hands-on asset management approach. Of the targeted return of 12% pa1, approximately 50% is expected to derive from income.

1Returns quoted are gross of fees, costs and taxes.