Harworth Estates will begin the speculative development of a 75,000 sq ft industrial unit in February at its 17-acre Gateway 36 scheme in Barnsley.
The new unit will provide high-quality manufacturing and logistics space with a BREEAM “Very Good” sustainability rating. It is expected to be completed in September 2016. Letting agents for the development are Knight Frank and Gent Visick.
The start of construction of the second phase follows the receipt of planning consent from Barnsley Council for the unit, together with consent for the third and final phase of development at Gateway 36 that will comprise a drive-through restaurant, a hotel or car showroom and a “Farmhouse Inn” pub, operated by Greene King.
Funding for the construction of the new unit has come from a £2.7 million loan from the Sheffield City Region (SCR) Joint European Support for Sustainable Investment in City Areas (JESSICA) Fund. It will be the fourth unit to be developed at Gateway 36, which is located by junction 36 of the M1 off the Dearne Valley Parkway, and is designed to meet the region’s rising demand for and limited supply of new industrial units.
The first three units, which will total 65,000 sq ft and have been pre-let to Barnsley Council, are expected to be completed in January 2016. Funding for this first phase, called R-evolution @ Gateway 36, also came from the SCR JESSICA Fund, which provided a £4.8 million loan to enable infrastructure works and the construction of the units to take place.
R-evolution @ Gateway 36, will, in total, create more than 450 new jobs in addition to having the potential to add £20m in Gross Value Added to the local economy. All occupiers will have access to comprehensive business support through the council’s experienced investment team, including free guidance on access to finance, recruitment and training, as well as the potential to receive business growth coaching from the nationally-recognised Enterprising Barnsley programme.
Dave Travis, Associate Director of Business Space at Harworth Estates, said: “Building this unit speculatively marks another exciting period for Harworth Estates and our Gateway 36 development. There is a lack of good-quality units of less than 100,000 sq ft in the region and we have taken this decision to steal a march on other developers focusing on ‘big box’ logistics.
“Given the number of enquiries we have already had on Gateway 36, we expect even more companies that want a modern, high-specification unit adjacent to the M1 to express an interest”.
William Church, Director of CBRE Capital Advisors, investment advisor to the SCR JESSICA Fund, added: “This speculative unit at Gateway 36 is exactly the type of development the Fund (created by the SCR LEP and Local Authorities) was established to provide funding for: one which will benefit the local economy and where there is clear occupier demand in an area of undersupply but little interest from the traditional lenders. We are delighted that we were able to create and deliver the necessary financial package to enable this speculative development to happen”.
The SCR JESSICA Fund, which is made up of the European Regional Development Fund (ERDF) and Growing Places capital, aims to provide funding for projects at competitive commercial rates where funding might otherwise prove challenging in the current markets. The Fund will commit capital to regeneration opportunities with a focus on office and industrial developments which meet the ERDF’s targets on employment, remediation and floorspace outputs. The Fund is managed by CBRE Capital Advisors.