Caddick Group is to build a £50m GDV distribution centre near Wakefield for global real estate investment manager AEW.

AEW will buy the site from Caddick Group and fund the development for its recently launched €290m develop-to-core UK logistics venture with Allianz.

Caddick Construction has been appointed as the main contractor and will deliver the 512,000 sq ft facility, now named Wakefield 515.

Myles Hartley, managing director at Caddick Developments, said: “As a Group our focus is on structurally-supported asset classes such as build-to-rent and industrial/logistics, where we see long-term growth potential.

“Wakefield 515, which follows on from our successful Crosspoint 33 development, will be a landmark scheme in terms of size and scale and we are keen to start on-site, creating hundreds of jobs locally both during and after construction.”

Wakefield 515, previously known as Crosspoint 33 phase two, will sit next to the already completed Cross Point 33 phase one, a £100m 1.2m sq ft distribution centre now occupied by TJX Europe, parent company of retail brands TK Maxx and HomeSense.

Work onsite will begin early next year. The building is due to be delivered by Q4 2020 and will be marketed jointly by Dove Haigh Philips and JLL.

The Group’s build-to-rent housing brand Moda Living opened its first development, Angel Gardens in central Manchester, in October.

The Group is also due to start on-site with the first phase of its £300m SOYO neighbourhood in Leeds city centre, a 515-home BTR scheme that Caddick Construction will build for Moda Living.

Nick Winsley, managing director and head of investments at AEW UK Investment Management, added: “This acquisition is an excellent opportunity for AEW. The UK logistics sector is demonstrating historically strong take-up, occupancy levels and rental growth with very little new Grade A supply in the Yorkshire market for larger warehouses.”