Tungsten Properties, one of the UK’s leading mid-box industrial and warehouse developers, funded by British Airways Pension Trustees Limited and advised by Savills, has completed the acquisition of a 10.4-acre site at Interchange 26 in Cleckheaton, Kirklees, Bradford in West Yorkshire from Opus North for £7.07 million.
Enabling works for the site are currently being carried out by Opus North to provide a serviced plateaued site by Q4 2020. Subject to reserved matters planning application approval, Tungsten Properties will begin construction of ‘Super B’, a development of a 230,000 sq ft unit in Q1 2021, with completion expected by summer 2021.
The site is in a strategic position at the major intersection of the M62 TransPennine motorway and M606 Bradford link which provides the main arterial route between Yorkshire and Lancashire. It will sit within Opus North’s new manufacturing and logistics park branded Interchange 26. Opus North is preparing to start development of a 100,000 sq ft unit and an 50,000 sq ft unit on Phase 1 of the park.
The acquisition follows Tungsten Properties’ success of Super G in Glasshoughton where a 261,000 sq ft high grade warehouse facility was speculatively developed and within three months of completion, was let to PUMA and the investment sold.
According to Savills, in 2019 the Yorkshire industrial market saw record levels of take-up reaching 5.2 million sq ft through 21 separate transactions, significantly higher than the long-term average of 3.78 million sq ft. Following the recent strong levels of take-up, it has caused the rolling five-year average to reach record highs at 4.25 million sq ft. This trend has continued into 2020 as take-up in Q1 has reached 909,970 sq ft, over 200,000 sq ft more than the long term Q1 average of 692,938 sq ft.
Ian Dunckley, development director, Tungsten Properties, said: “Having acquired this site from Opus North, we are looking forward to speculatively developing another big box in Yorkshire to provide exceptional workspace and jobs. Working with Savills we have noticed an opportunity in West Yorkshire where there has been a long-standing shortage of high-quality industrial space and, combined with the strong level of demand from occupiers, we believe this asset will generate significant interest.”
Ryan Unsworth, development director, Opus North, added: “This transaction proves the strength of this location as one of the primary industrial locations in the North of England, and vindicates our decision to buy the site unconditionally in 2019. Working with Kirklees Council we will submit reserved matters applications for the remaining balance of our site and develop these units out for local occupiers”.
Matthew Ewin, associate in the national industrial & logistics team at Savills based in Leeds, commented: “The need for well specified industrial space in good locations across West Yorkshire continues to grow. The location of this asset, which is set close to already popular industrial parks with excellent motorway connectivity, makes this an extremely attractive investment opportunity. Since the outbreak of Covid-19, demand for ‘Big Box’ accommodation has continued at consistent levels across the region.
“Significant medium- and long-term requirements have been circulated on behalf of occupiers with good levels of activity from the online retail and food sector. Currently within West Yorkshire there are no 200,000 sq ft to 300,000 sq ft units immediately available and, with strong activity for better quality units, Super B will provide some much-needed stock to the West Yorkshire market.”
Tungsten Properties was represented by agents Savills and Moriarty and Company. Opus North was represented by Knight Frank and Dove Haigh Philips.
