Kier Property has sold its Trade City scheme in Luton to Abrdn’s AIPUT Fund for £38.44m
The six acres of land was acquired by Kier Property from Downton in May 2019 and then developed into the120,000 sq ft Trade City scheme.
This was Kier Property’s first industrial project in Luton and hosts successful occupiers including; Evolution Ceramics, Euro Taste Limited, Gopuff, Ether Worldwide, Grant and Stone and Dnata – creating approximately 252 jobs.
Leigh Thomas, managing director for Kier Property commented: “This sale demonstrates our ability to develop, add value and secure key occupiers in key locations. In February we announced our £400m industrial joint venture with PGIM Real Estate.
Nick Smith, fund manager for AIPUT commented: “This latest addition to AIPUT’s industrial real asset portfolio represents our first investment in Luton, an incredibly well-connected but supply-constrained South-East town that is making huge strides in building back better following the brutal challenges of recent times.
“Trade City Luton represents a key step-change in our drive to transform the resilience of AIPUT’s portfolio, helping fulfil our lead strategy to decarbonise and diversify our industrial real assets in thriving gateway markets. Responsibly regenerating and investing in the very best highly energy-efficient and highly adaptable industrial property is critical to appeal to a new breed of first and last mile occupiers and their staff.
“Our goal is to leverage every opportunity here to use our asset management skills to unlock real long-term value for people and businesses, as much as working to enhance the bottom line. Key will be promoting and plugging into the greener transport of goods and people through Luton’s extensive multi-modal supply chain networks.”
Kier Property currently has a £1.5bn pipeline and has developed more than six million sq ft in the industrial sector across 54 schemes in the UK. Each scheme is delivered to the highest institutional specification with a strong focus on sustainability, targeting a minimum EPC rating of A and BREEAM Excellent certification.
Kier Property were advised by Savills and Walker Morris LLP.