Industrial developer Tungsten Properties has bought 11 acres at Appleton Thorn Trading Estate in Warrington from Travis Perkins and plans to build a 243,000 sq ft shed in response to a lack of logistics stock in the North West.
Building firm Travis Perkins put its former distribution centre site in Appleton Thorn, just off Junction 9 of the M56, last November.
Ian Dunckley, development director of Tungsten Properties, said: “[Consultancy] Savills recently reported that the North West has a logistics market vacancy rate of just 5.48%, the lowest level ever.
“[The report] calculated that the region has just 1.07 years’ supply. Therefore, our investment aims to meet market demand to create workspace, jobs and solutions for business and ultimately consumers.”
The acquisition was funded by British Airways Pension Trustees, and Tungsten hopes to have the new industrial unit built by 2021, subject to approval of a planning application being prepared by Pegasus Group.
Office space, 18 dock-levellers and a 229-space car park also feature in the plans.
The 110,000 sq ft former Travis Perkins unit, marketed as part of the sale, would be demolished under the plans.
Other businesses at Appleton Thorn Trading Estate include Eddie Stobart, DPD, Stretton Green Distribution Centre and Shred-it.
The purchase is Tungsten’s third during lockdown following the acquisition of two industrial units in Yorkshire totalling 400,000 sq ft.
Tungsten has 600,000 sq ft of warehouse under construction and a total pipeline of 1.6m sq ft with a gross development value of £186m.
Colliers acted on behalf of Tungsten and British Airways Pension Trustees. Avison Young and B8 Real Estate acted on behalf of Travis Perkins.
Colliers and Moriarty & Co have been appointed as letting agents.
Travis Perkins signed a deal for 700,000 sq ft at nearby Omega in 2013 and announced it would close the Appleton site last November as part of a plan to “simplify” the business, according to the company.
Omega is a 575-acre mixed-use scheme at Junction 8 of the M62, north of Warrington, being developed by a partnership between Homes England, which owns the land, and Omega Warrington, known as OWL, a joint venture between Miller Developments and KUC Properties.