Savills - Retail Sale - Milton Keynes, Buckinghamshire

Date: 16 May 2008

River Island, advised by Savills, has agreed terms for a freehold 450,000 sq ft (41,805 sq m) distribution centre at Magna Park, Milton Keynes with joint owners Gazeley and Land Securities. The fashion retailer paid in excess of £20 million for the land element.

This move will consolidate River Island's current two distribution centres at Tongwell, which Savills is also advising on the disposal of. The new building at Magna Park is expected to be completed for operational purposes in Spring 2009.

Graham Brown, director of Savills, comments: "As one of the most important and well located 'big shed' development sites currently available in the UK, Magna Park is the perfect location for River Island. The new well-configured units will perfectly meet the retailer's requirements."

The 3.4 million sq ft (315,860 sq m) distribution park is situated on J13 of the M1 near Milton Keynes and will provide modern flexible units, ranging in size from 100,000 sq ft (9,290 sq m) to 1 million sq ft (92,900 sq m). The first unit totalling 650,000 sq ft (60,385 sq m) has been pre-let to anchor tenant John Lewis. Other local occupiers in the area include Waitrose, Mercedes, Staples and Cadburys.

Jones Lang La Salle and Burbage Realty jointly advised Gazeley and Land Securities.

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