SREF completes major letting to DPD as it continues industrials push

Schroder UK Real Estate Fund (SREF) has announced it has completed a 58,320 sq ft pre-let with international delivery and logistics company DPD at Revolution Park in Wolverhampton.

The pre-let to DPD represents 58,320 sq ft of SREF’s 116,000 sq ft industrial development pipeline at its assets in Hartlebury and Wolverhampton, as Schroders Capital looks to capitalise on inherent opportunities within the fund’s existing portfolio.

DPD’s new unit at Revolution Park has sustainability at its core with the building designed to a Net Zero Carbon specification, targeting BREEAM[1] Excellent accreditation and an EPC A+ rating. The development will also feature solar panels and electric vehicle charging points which will support DPD’s range of electric delivery vehicles.

The letting to DPD follows on from a very transactional 2021 for SREF’s industrial portfolio which saw 633,850 sq ft of transactions taking place over the year, with the fund also completing a landmark £345m industrial swap deal with SEGRO in October, which saw SREF acquire a portfolio of six multi-let industrial and logistics assets located across the UK, worth a collective £205m.

One of Schroders Capital’s strategic priorities  for the fund is to grow income through initiatives including developing industrial assets on existing sites and maintaining the portfolio’s defensive qualities through active asset management. New investment has focused on targeting sustainable higher yields, achieving rents ahead of ERVs, and capitalising on opportunities driven by structural evolution, such as demographic change and the growth of new technology, as well as the growing demand for assets with high sustainability credentials. 

Jessica Berney, Fund Manager of Schroder UK Real Estate Fund at Schroders Capital, said: “To cater for the growing demand for industrial space we are continuing to develop and refurbish our existing industrial assets across the UK. This allows us to increase our exposure to the sector without having to pay high prices for new assets in a very competitive market.

“Major pre-lets such as the lease with DPD at Wolverhampton de-risks the development of new industrial assets and follows a similar pre-let we completed with ETAC for a purpose-built 30,000 sq ft distribution facility at Hartlebury Trading Estate.

“Thanks to our industrial team’s active asset management and close relationships with occupiers, hawse have identified opportunities across the fund’s portfolio where we can develop new assets and provide more space for new and existing tenants.”

DPD’s new facility at Revolution Park will be one part of the four-unit 200,000 sq ft industrial development at the Wolverhampton site, where SREF is working with development partner Trebor Developments to create one of the most sustainable and efficient buildings within its industrial portfolio.

Commenting on the letting to DPD, Greg Dalton Development Manager for Trebor Developments added:

“It’s fantastic to have agreed terms with DPD so soon after the site’s formal launch to market and we’re delighted to be working with Schroders to see this important brownfield site in the Black Country fully redeveloped so soon. Furthermore, DPD supports Trebor and Schroders’ ambition to invest heavily in sustainable initiatives and resources, and the unit will create a best-in-class asset for all parties involved.” 

 

[1] BREEAM is an international scheme that provides independent third party certification of the assessment of the sustainability performance of individual buildings, communities and infrastructure projects.

 


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