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 Basingstoke and Gatwick in the South East – 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.”
Creating an 11.3-acre business park – after signing a development agreement with freeholder Basingstoke and Deane Borough Council and leaseholder ITT Inc – St. Modwen will build three high-quality speculative units of 36,987, 51,572 and 97,781 sq ft, starting this month. St. Modwen Park Basingstoke’s first phase will be available in Q3 2021, creating up to 250 new jobs once occupied.
At St. Modwen Park Gatwick in Copthorne, which is located 5.5. miles from the neighbouring airport, the developer has secured detailed planning permission for a 64,752 sq ft unit as part of the scheme’s second phase. St. Modwen’s first 100,000 sq ft cross-docked unit at the scheme was pre-let to Gatwick Airport Limited in September 2019 and is due for completion in October 2020.
David McGougan, Senior Development Manager at St. Modwen Industrial & Logistics, commented: “Both our Basingstoke and Gatwick schemes form part of our strategy to grow a high-quality industrial and logistics portfolio. With work getting underway in the coming weeks on the first phase of speculative units at St. Modwen Park Basingstoke and a second warehouse at St. Modwen Park Gatwick, these are exciting times for the South East. We’re hoping to create new jobs for the region and continue building our industrial and logistics client base.”