Online fashion group Asos has announced it will invest £90m in a new fulfilment centre in Staffordshire, with a plan to employ 2,000 people at the site over the next three years.

Fashion giant ASOS has signed a deal with AEW for a 15-yr lease with on for a 437,000 sq ft warehouse at Fradley Park, Lichfield.

The warehouse forms part of the joint venture between AEW and Allianz Real Estate launched in February 2019, focused on develop-to-core opportunities in prime locations within the UK logistics sector.

Fradley 437 achieved Practical Completion in March of this year. It is the last major development plot on Fradley Park Industrial Estate at Lichfield, whose occupants include Tesco, DHL, Screwfix, Tile Giant, Newell and Great Bear Distribution.

Nick Winsley, managing director and head of investments at AEW UK Investment Management, said: “We are delighted to have secured ASOS as a tenant at this key location, as it continues to grow its business across the world. There continues to be strong demand for Grade-A warehousing, where supply at the larger end is more limited and we look forward to continuing with our funding programme in the new year”

Kari Pitkin, head of business development for Europe, Allianz Real Estate said: “As we build our logistics venture in the UK against the favourable backdrop of limited availability and increasing tenant demand for larger format warehouses, we are pleased to bring ASOS into Fradley Park. More broadly, the logistics sector continues to represent a key focus within our diversification strategy. We expect for strong market fundamentals in the sector such as the growth of online shopping and supply chain rationalization, to continue to offer growth opportunities through investments in prime real estate in excellent locations.”

Asos chief executive officer Nick Beighton said: "This significant investment in infrastructure and large-scale job creation is a reflection of the confidence Asos has in its future and the quality of the skills and talent available in this well-placed location."

Staffordshire County Council’s deputy leader and cabinet member for economy and skills Philip White said: “It is tremendous news that such a high-profile company like Asos has decided to locate its new distribution centre in Lichfield. Given our location at the heart of the UK’s transport network, logistics is one of our key sectors and the creation of 2,000 jobs is a welcome vote of confidence in the Staffordshire economy at a time when many people may be worrying about the effect of the pandemic on their employment prospects.

“With the growth of online shopping the company is set to see strong growth in the future. The new distribution centre is set to be operational in the next 12 months so we would expect to see new opportunities advertised soon. We would urge people to contact the Stoke-on-Trent and Staffordshire Growth Hub for advice and guidance on approaching all new opportunities in the county, both for employment and skills development.”

MWRE and Avison Young, represented the landlord and Knight Frank represented ASOS.