In a sign of institutional investors’ confidence in the regional industrial market, M&G Real Estate, part of Prudential, has agreed to fund the speculative development of 400,000 sq ft of distribution space at Logistics North in Bolton
The two prime logistics buildings, of 225,031 sq ft and 175,087 sq ft respectively, will be built at Logistics North, next to J4 of the M61 and three miles from the M60 and M62. The scheme will be built by Harworth Estates, developer of Logistics North. Harworth has already started groundworks and intends to begin construction of the two facilities in early 2016.
David Crowley, director of logistics at M&G Real Estate, said: “There is a limited supply of grade ‘A’ warehouses of this size in the region, and with tenant demand remaining resilient and rental growth evident due to limited building supply, this investment provides us with access to prime, well-specified and located assets.
“It also supports our continued strategy to selectively increase our exposure to the sector across the country, providing the long-term investment that will help drive economic growth. Equally it draws on the long-standing and proven skills, expertise and experience of our specialist team to secure the right acquisitions with clear income potential and strong returns.”
Phil Wilson, executive director of Harworth Estates, added: “This transaction with M&G Real Estate is the first institutional funding at Logistics North and reflects the quality of the development and its prime position in the North West commercial market.
“The strength of demand for high-quality logistics space in the North West has already led to Aldi, MBDA and Joy Global becoming occupiers on the development and we look forward to welcoming others in due course.”
M&G is already funding the 175,000 sq ft speculative warehouse Union Square at Trafford Park with developer Marshall CDP.
M&G is part of Prudential, which has over £500bn of assets under management, including more than £50bn invested in UK infrastructure and property.
B8 Real Estate acted for M&G Real Estate. JLL and Cushman & Wakefield represented Harworth.