Panattoni, the largest logistics real estate developer in Europe, has signed a lease with Ocado Retail Limited, the online grocer, for a 346,132 sq ft speculatively developed logistics facility in Luton.

Ocado Retail Limited, a joint venture between Marks & Spencer Group and Ocado Group, has signed a 20-year lease at Panattoni Luton 346.

James Watson, Development Director for Panattoni said: “We are delighted to welcome Ocado Retail Limited as a customer to Panattoni Park Luton. Their acquisition of Luton will support their wider plans and assist Ocado in satisfying their customer’s growing demand for online groceries.

The completion of this lease on a building of this scale also demonstrates the demand for high quality available warehouse accommodation in the UK, reinforcing the importance of our speculative development programme. ”

Michael Finnegan, Senior Real Estate Development Manager for Ocado said: ‘The leasing of this Customer Fulfilment Centre (CFC) marks the latest step in delivering Ocado Retail Limited’s ambitious national expansion plans.”

The letting to Ocado completes the leasing of the wider Park at Luton, which is located immediately adjacent to the newly built junction, 11a of the M1.  It is an ideal location from which to serve Greater London, the Midlands and wider south east.

The first unit at the Park of 69,000 sq ft was let to Deta Electrical on a 15-year lease.

Letting agents for Panattoni were Savills, M1 Agency and Adroit Real Estate. Gerald Eve advised Ocado.