PGIM Real Estate partners with Jaynic to develop logistics hubs in Suffolk
US realty subsidiary, PGIM Real Estate, has partnered with Jaynic to develop two logistics hubs in Suffolk valued at £35m
A US realty subsidiary has provided a £21.5 million loan facility to underpin development of two logistics hubs in Suffolk valued at £35m. PGIM Real Estate, the real estate investment arm of a Wall Street-quoted $1 trillion US corporation, has partnered with Jaynic to develop the units at Suffolk Park, Bury St Edmunds. PGIM is a global investment management corporation headquartered in the US and trades on the New York Stock Exchange.
Readie Construction is to build two units under a £13m contract for which construction will start at the beginning of May and scheduled to complete in November. There is potential for an occupier to start racking/fit-out about one month earlier. Forecast rental values are £5.95 per sq. ft. based on standard FRI lease.
Development director with Jaynic, Ben Oughton said that these units will be the only speculative development in this area currently being undertaken. It will provide much needed stock that can be delivered before the end of 2018 setting the scheme apart from other development sites in the vicinity, where lead in and occupation lags by anywhere between 12 – 24 months.
Managing director and head of UK at PGIM Real Estate, Andrew Macland added that the firm is proud to be Jaynic’s funding partner for this scheme as its expertise and track record exemplifies PGIM Real Estate’s partner-led investment approach. This well-located site in a currently under-served area for logistics properties will offer its investors access to a strongly performing sector. Jaynic has a strong development pipeline and PGIM Real Estate is looking forward to establishing a long-term relationship through further projects together.
The development is part of a broader initiative with St Edmundsbury Borough Council and housebuilder Taylor Wimpey to support a range of new and existing businesses in the popular Bury St Edmunds area for creating jobs. Bury St Edmunds is the primary commercial centre for West Suffolk and houses major national operators such as Sealey, Greene King, British Sugar, DHL, Century Logistics, Treatt, Servest, Mizkan and Taylor Wimpey.
Jaynic has created a number of major employment sites in the region including Cambridge Research Park, Buckingway Business Park, Cambridge, University of Essex Knowledge Gateway, Colchester, Haverhill Business Park and Haverhill Research Park.