St. Modwen has launched its latest industrial and logistics development phases as part of plans to deliver c. 1.5m sq ft of high-quality space in 2021. With the first construction activity starting this month, St. Modwen will be active on 11 schemes to deliver over 25 new units in key locations across the UK – including Gloucester and Newport in the South West and Wales – as businesses continue to bolster supply chains.
This latest build programme further unlocks the potential in the company’s 19m sq ft future pipeline, 45% of which already has planning. In July, St. Modwen confirmed being on track to deliver 1.2m sq ft of new space during 2020 with 53% let or under offer, up from 18% of committed pipeline at start of 2020, reflecting continued strong demand.
Industrial and logistics represents an important growth area for St. Modwen and now accounts for 48% of the company’s total portfolio, delivering an attractive c. 8% yield on cost and c. 9% yield on incremental capex. The company’s activities help to stimulate local and national economic investment and is underpinned by major trends, including the rise of e-commerce and reliance on resilient supply chains, both of which have been sped up as a result of COVID-19.
Rupert Joseland, Managing Director of St. Modwen Industrial & Logistics, commented: “As leasing momentum remains strong, we are excited to be pushing the button on new developments to further expand our portfolio. We have one of the UK’s biggest pipelines and focus on building out high-quality developments in key strategic locations. From major e-commerce companies and logistics firms to regional and specialist businesses, we are here to deliver for our customers and enable them to thrive in our modern and sustainable parks across the UK.”
In Gloucestershire, works are commencing on a second phase of industrial and logistics development at St. Modwen Park Gloucester. Phase 2 comprises four high-quality speculative units ranging from 36,000 – 56,000 sq ft to be completed by Summer 2021. This follows the first phase of speculative delivery, with space already let to global manufacturer ADEY Innovation, occupying a 45,000 sq ft unit in March 2020, followed by ProCook, one of the UK’s top suppliers of kitchenware, which occupies a 56,000 sq ft unit.
Strategically located at the gateway to South Wales, the second phase of development is underway at St. Modwen Park Newport. Two units of 30,000 sq ft and 100,000 sq ft will be delivered, providing high-quality industrial and warehouse space. The expansion follows the success of the scheme, already home to Amazon and CAF’s new train production facility.
James Irwin-Singer, Development Manager at St. Modwen Industrial & Logistics, commented: “We’re continuing to deliver at pace on our speculative development schemes in the South West and Wales. St. Modwen has placed its confidence in the region – as evidenced by our latest phases in both Gloucester and Newport and we hope to add to the likes of Amazon, ProCook and ADEY Innovation with more market-leading industrial and logistics occupiers, bringing more jobs and new opportunities to the region’s economy.”