M&G Real Estate is to fund the construction of 400,000 sq ft of distribution space at Harworth Estates’ Logistics North development in Bolton – the largest industrial development under construction in the North West of England.
The two prime logistics buildings, of some 225,031 sq ft and 175,087 sq ft respectively, will be built at Logistics North, adjacent to junction four of the M61 and three miles from the M60 and M62. The scheme will be built by Harworth Estates, who have already started groundworks and intends to begin construction of the two facilities in early 2016.
The new investment is a mark of M&G Real Estate’s continued activity in the logistics sector, following the funding of 480,800 sq ft of new warehouses at Optimus Park in Leicestershire, announced earlier this year and an ongoing commitment to investment for long-term growth across the UK. In the last year M&G Real Estate invested around £400 million in Manchester and Greater Manchester and has also provided close to £100 million for the extensive development of Central Square in Leeds – the first speculative office scheme in Leeds in eight years.
David Crowley, Director, Logistics and Industrial at M&G Real Estate, comments: “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, adds: “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 a part of Prudential plc, which has over £500 billion of assets under management and is one of the largest providers of long-term finance in the UK, including more than £50 billion invested in UK infrastructure and property across a range of sectors.
B8 Real Estate acted for M&G Real Estate. JLL and DTZ represented Harworth.