Client: Canada Life, Kingsway Business Park

Background
Gerald Eve, one of the UK’s leading consultants on the logistics and distribution sector, were appointed to advise Canada Life on a proposed strategy to successfully secure the opportunity to fund a new 870,000 sq ft National Distribution Centre (NDC) for JD Sports plc, developed by Wilson Bowden.

Approach
JD Sports plc created an intermediate interest between the developer and the fund, and so the funding transaction was to be structured by way of a fixed price commitment for the lowest initial rent. Gerald Eve provided Canada Life with a strategic overview of both the UK and regional distribution markets, both from an investment and occupational perspective, to place this property within the context of each market, and advised on appropriate rental levels and rental growth prospects, both in absolute and relative terms. Their relationship with JD Sports plc’s agent culminated in securing a funding transaction upon acceptable terms to Canada Life, following various rounds of competitive bidding.

Results
Following agreement of a complex tri-partite Heads of Terms, which involved meetings with principals, solicitors and agents, completion of the site purchase in accordance with the funding and development agreements took place. Gerald Eve were retained as sole advisers to Canada Life throughout this process and were appointed as the Fund’s development monitoring agent in an ongoing role.