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 Tamworth and Lincoln in the Midlands – 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% of associated £7.7m ERV 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.”
Located at the heart of the Midlands, St. Modwen Park Tamworth provides unrivalled access to Junction 10 of the M42, and is already home to supply chain specialist Euro Pool System, installation company SM UK Ltd and St. Modwen’s biggest ever speculative industrial and logistics unit scaling 321,000 sq ft. Construction starts this month on two 48,800 sq ft units – which can be combined to make 97,600 sq ft – and one 63,000 sq ft unit, ready for occupation in June 2021.
Rob Richardson, Senior Development Manager at St. Modwen Industrial & Logistics, commented: “Our flagship Tamworth scheme epitomises everything that being located at the heart of the Midlands Logistics Triangle can offer. This is a highly desirable site, built to market-leading design and specification which has already proven popular to leading industrial and logistics firms. With these three new additions to the park on the way, we have a range of size options for businesses to strengthen their UK supply chains and relocate or expand into the Midlands.”
Meanwhile, in Lincolnshire, the developer is set to commence construction of four units as part of a third phase of high-quality industrial and logistics development at St. Modwen Park Lincoln. Ranging from 16,000 sq ft to 52,000 sq ft, the warehouses follow on from Phase 2 of the park, where both units have been pre-let, including a 10-year, 25,000 sq ft deal to global courier DHL Parcel (UK) Limited.
Gemma Butler, Development and Leasing Manager at St. Modwen Industrial & Logistics, commented: “Our popular Lincoln scheme is bringing a wealth of industry-leading occupiers to the East Midlands. Designed to provide businesses with the opportunity of being located on the A46 dual carriageway with excellent access to sea ports, airports and the national motorway network, St. Modwen Park Lincoln can cater to all modern occupier needs with high bays, top specification offices, generous car parking and ample yard space.”