M&G Real Estate, one of the UK’s most active real estate investors, working with Trebor Developments and tenant Pilkington Automotive Limited, has secured detailed planning consent for a significant expansion and transformation of its distribution warehouse in Redditch.
The development will provide high quality manufacturing national distribution facilities for automotive glass specialist Pilkington, which is relocating from its existing manufacturing site in Kings Norton. The company, which is owned by Japan’s NSG Group, is consolidating its UK operations within a single 320,000 sq ft unit in Redditch.
Chris Jeffs, Director, Investment Management at M&G Real Estate commented: “This positive decision allows us to act on the development potential of the site and provides Pilkington Automotive with a modern, high quality manufacturing and distribution facility that will cater for all of its future needs. This is a perfect example of how our focus on proactive asset management creates solutions for our occupiers whilst delivering investment performance for our investors.”
This agreement further demonstrates our commitment to investing in the regions, following the completion of deals to acquire and fund the construction of industrial assets in areas such as Staffordshire, Northamptonshire and Cambridgeshire over the last year.”
Work on the development will start later this year, allowing Pilkington to take full occupation in the second half of 2020. NSG Group’s existing Redditch distribution business will remain operational throughout the build and a new 20-year lease has been agreed on the extended premises.
Mark Wright, Trebor’s partner leading the scheme commented: “We welcome the consent and look forward to working with M&G Real Estate and NSG Group to deliver its occupation requirements by 2020.”
Rob Purcell, NSG Group’s Head of Automotive Original Equipment across Europe said: “This is very good news for Pilkington Automotive and means we can now get to work on making Redditch the consolidated centre for our automotive operations throughout the UK. This new, modern facility will allow us to continue to develop our glass products for our customers’ vehicle automation and electrification initiatives.”
M&G Real Estate was represented by Trebor Developments and NSG Group was represented by JLL.