USAA Realco, the Texan investor based in San Antonio, is to co-fund 758K SF of new speculative warehousing at Omega South, Warrington, as it expands into European logistics property.

The new premises will be built by Omega Warrington Ltd for Amsterdam-based Mountpark Logistics EU Sarl, a joint venture between Mountpark Finco and USAA Realco which was established to undertake logistics development across Europe.

The U.S. move into large-scale North West logistics property comes as American investors back away from London thanks to high prices and low prospects of rental growth. Research by Real Capital Analytics showed North American investment in London is down 69% compared to its 2015 peak.

This is the joint venture's second U.K. scheme, having already completed 1.4M SF at Bardon, Leicestershire.

The joint venture is committed to funding the scheme speculatively, with three units of 346K SF, 137K SF and 91K SF scheduled for completion in November. A fourth unit totalling 184K SF already has planning consent and will follow as a second phase.

“The park has a fantastic reputation as the premier distribution location in the North West," Mountpark Logistics Associate Director Tom Kilmister said.

"There is currently a distinct shortage of available, good quality industrial and logistics accommodation in Warrington and the North West, providing limited opportunity for businesses looking to expand in to the area or relocate; Mountpark Warrington will provide much needed state-of-the-art accommodation for occupiers seeking quality workspace.”

Omega occupiers include ASDA, The Hut Group, Plastic Omnium, Domino’s and Amazon on Omega South, neighbours to Brakes, Hermes, Travis Perkins and Haydock Commercial.