PROPERTY

Warehouse deal to create local jobs

Industrial landlord Urban Logistics Reit (ULR) has agreed to buy 10 warehouses totalling 375,000 sq ft – mostly based in the East Midlands – in a £40m deal, providing opportunities to create about 400 jobs.

The AIM-listed company, whose tenants are mostly in the supply chain for distribution networks, agreed a two-phase acquisition from Wilson Bowden Developments, which was represented by Chamber member FHP Property Consultants, ahead of the buildings being completed.

Detailed planning applications have been submitted to build the 10 warehouses on four sites –Blenheim Park in Nottingham, Willow Farm in Castle Donington, Optimus Point in Leicester, and Kingsway Business Park in Rochdale.

Richard Moffitt, chief executive at ULR, which was advised by M1 Agency, said the development programme “will add further highquality new assets to the portfolio at a time when smaller urban logistics warehouses are in short supply”.

He added: “Given the strength of demand for space from occupiers seeking representation in the East Midlands market, which has been undersupplied for some time now, we expect to demand to be strong.”

The first phase of the transaction commits to building four units ranging in size from 18,090 sq ft to 81,100 sq ft at Blenheim Park and a single detached warehouse of 43,850 sq ft at Optimus Point.

These are expected to be ready for occupation by summer 2022 and it’s anticipated could create up to 250 jobs.

Another 150 jobs could then be created during the second package of a further five warehouses, which ULR has the option to purchase, ranging from 20,000 sq ft to 44,608 sq ft later in the year.

John Proctor, director at FHP Property Consultants’ Nottingham office, added: “The growth of ecommerce has been one of the driving factors behind the continued strengthening within the logistics supply chain sectors of the market.

“We have seen major large-scale units of between 100,000 sq ft to one million sq ft being increasingly delivered to satisfy the larger-scale demand.”

New Government hub completed in Nottingham

Described as one of the most transformational developments delivered in the East Midlands in more than a decade, Unity Square – the new UK Government Hub in Nottingham – has now completed construction.

The Grade A office scheme in Queensbridge Road, opposite Nottingham railway station, will be home to HM Revenue and Customs (HMRC) and other Government departments after signing a 25-year pre-let agreement on the scheme with joint venture partners Sladen Estates and Peveril Securities.

Unity Square in Nottingham is a modern 10-storey office block

‘Unity Square will have a positive impact on job creation and the economic growth of the area’

It’s hoped the modern 10storey office block, built at the site of a former multi-storey car park and with capacity for 4,000 workers, will serve as a catalyst for regeneration in the southside area of the city that also features the Broadmarsh site.

Nick Sladen, chief executive of Chamber member Sladen Estates, said: “Unity Square will have a positive impact on job creation and the economic growth of the area. It should prove to be a spark for significant regeneration in the southside of Nottingham and provides a striking addition to the city skyline.

“We are really pleased that despite the coronavirus pandemic, and all the labour and material sourcing issues this caused, that the scheme continued on track for its original target completion date.”

Peveril Securities and Sladen Estates purchased the 1.14hectare site in 2015 and demolished the existing derelict car parks before embarking on the scheme, with the Government hub being forward funded by LGIM Real Assets, part of Legal & General.

It was designed by Manchesterbased architecture firm 5 Plus and constructed by Derbyshire-based Bowmer + Kirkland, with the contractors having to contend with the coronavirus pandemic during the final stages of the build.

The development is now set to be one of the largest regional offices for HMRC, whose Nottingham office is currently based at the Castle Meadow campus, when it begins moving employees in from early 2022.

Colin Casse, locations programme director at HMRC, said: “A stunning building, right in the heart of the city, 1 Unity Square will provide a flexible modern working environment that can be adapted as our ways of working develop in the future.”

Deal to deliver logistics facilities

Property developer Clowes Developments has agreed a £100m deal with insurance giant NFU Mutual to deliver new logistics facilities throughout the UK –including several in the East Midlands.

The deal, which involved law firm Geldards and FHP Property Consultants, will lead to Clowes delivering six logistics sites – five of which will be speculatively built.

Totalling in excess of one million sq ft, the three sites are at East Midlands Distribution Centre (EMDC) in Castle Donington, Castlewood Business Park in South Normanton, and Centrix Park in Northamptonshire.

The size of the new units will range from 58,586 sq ft at Centrix Park to a unit of close to 250,000 sq ft at EMDC.

At Castlewood Business Park, two units will be delivered measuring 134,192 sq ft and 176,817 sq ft, while EMDC will accommodate buildings totalling 189,573 sq ft and 249,418 sq ft.