Harworth Group plc, the brownfield land and property developer & investor, has secured two new long-term lettings at its speculative “R-evolution” scheme at Logistics North in Bolton, the North West’s largest live commercial development.
Following their completion, these deals have set a new headline rent for the site, with Harworth’s recurring income base also growing by over £300,000 per annum within its retained Business Space portfolio.
It has agreed two ten-year leases with Northern Building Plastics Limited and Vaclensa Limited for its C4 and C5 “R-evolution” units at Logistics North in Bolton, totalling 52,871 sq. ft. These lettings, which were completed within two weeks of practical completion in December 2017, have achieved a new headline rent of £7.00 psf for Logistics North, reflecting the continued strong demand for high quality industrial assets in the region. B8 Real Estate and Jones Lang LaSalle (JLL) acted as joint agents for Harworth on both transactions.
Northern Building Plastics and Vaclensa join a number of established occupiers at Logistics North, including Aldi, Amazon, Lidl, MBDA, Komatsu, Costa and Greene King. Over 2m sq. ft of commercial space has been built out at the development since it received outline planning consent in December 2013, with over 1,500 people already employed on-site. Once complete, Logistics North is expected to deliver around 5,000 jobs.
Harworth also completed the first phase of “Multiply” in November 2017 – a new commercial development being delivered through a Joint Venture between Harworth and the Lancashire County Pension Fund. Tenants are being sought for the first three completed units comprising ‘Phase I’, which are 63,070 sq. ft, 55,660 sq. ft and 44,771 sq. ft in size, built as a response to the lack of high quality units available to businesses in the North West. Phase I of “Multiply” forms part of a combined three-phase scheme to construct ten new commercial units totalling approximately 564,000 sq. ft, across 31.2 acres, over the next eighteen months. ‘Phase II’ comprises six further units of between 18,073 sq. ft and 149,198 sq. ft and is now under construction, with Buckingham Group Contracting Ltd instructed as the Joint Venture’s principal building contractor. B8 Real Estate and Jones Lang LaSalle (JLL) are retained joint agents on the scheme.
Ian Ball, Executive Director of Income Generation at Harworth, commented:
“These are two excellent deals for Harworth Group, with a new headline rent reflecting Logistics North’s status as one of the North’s leading manufacturing & distribution locations. We are now keen to maintain this momentum as the remainder of the site is developed out over the next three years.”
David Travis, Director of Business Space at Harworth, added:
“Growing a long-term recurring income stream remains a priority for the business and securing Vaclensa & Northern Building Plastics as tenants for our Business Space portfolio, just two weeks after practical completion of both units, reflects the strength of the North-West property market and justifies our decision to build these units speculatively. We look forward to welcoming other high-profile tenants onto site in 2018 as we continue to develop the remainder of the site, including our “Multiply” units that we’re jointly developing and asset managing with the Lancashire County Pension Fund.”
Deputy Leader of Bolton Council, Cllr Ebrahim Adia, added:
“This is further good news for Bolton – Logistics North continues to be a success and I am delighted that two more businesses are joining. The development is the largest industrial site in the North West, in an excellent location, and it is no surprise that companies are choosing it to be their home. Securing tenants so quickly to these units shows confidence in Bolton and will bring further new jobs for our residents.”
Steve Johnson, Director at retained agent B8 Real Estate, commented:
“The fact that tenants were secured for both Harworth’s “R-evolution” units on practical completion of the scheme on 10-year leases reinforces the current occupier demand in this size bracket. ‘Phase 2’ of Multiply at Logistics North will provide a further six units between c.20,000 sq. ft and c.150,000 sq. ft and is due to complete in October 2018 and we are already in advanced discussions with several companies who missed out on Harworth’s “R-evolution” units.”
Richard Johnson, Director – UK Industrial & Logistics at retained agent JLL, commented:
“We are continuing to witness healthy demand from occupiers requiring high quality space in prime locations. At Multiply on Logistics North we are meeting this demand with strong interest from several other occupiers, which we anticipate will result in a number of deals in the first half of 2018. The units are available from c.20,000 – 150,000 sq. ft, which means we can satisfy a wide range of size requirements.”