Property developer HBD will deliver 426,000 sq. ft. of new industrial space at its New Horizon scheme in Nottingham following a £53.8m forward-funding deal with Oxenwood Real Estate.
The forward funding partnership is with Oxenwood Logistics Fund 1 SLP, a discretionary fund managed by Oxenwood Real Estate LLP, the UK and European real estate investment firm.
New Horizon is a landmark 28-acre site in Nottingham, part of the former Imperial Tobacco plant, and will now see the creation of seven urban logistics buildings ranging from 30,000 sq. ft. to 145,000 sq. ft. Since acquiring the site, HBD has completed extensive works to bring it back into use in preparation for development commencing.
Nearby occupiers include Booker, Boots, ZF Services, DHL, Games Workshop, Aston Martin, Audi, Nissan, Ford, Sytner Group, Macfarlane Packaging and Big Yellow.
The development secured outline planning consent in 2019. HBD will now be submitting detailed plans to Nottingham City Council for approval so that work can start on the site to deliver the investment and new jobs as quickly as possible.
At the closure of the Imperial Tobacco Factory in 2017, 540 jobs were lost. Now, New Horizon has the capability to deliver up to 1,000 new jobs in the city.
The development is expected to complete in early 2023, subject to planning.
Justin Sheldon, Director and Head of Region at HBD, said: “The development of New Horizon, with a range of units and sizes will appeal to a variety of businesses and sectors, which will drive inward investment into the city and create new jobs. We are very pleased to be working with Oxenwood and look forward to bringing our plans forward.”
Vivienne Clements, Executive Director at HBD, said: “Industrial and logistics forms a key part of our strategy and we continue to build our portfolio across the UK – this latest deal will see the development of high-quality units at one of Nottingham’s most well-located sites. Demand for I&L space remains robust and we’ve no doubt that New Horizon will prove very successful.”
Jeremy Bishop, Co-Founder of Oxenwood, said: “This forward-funding agreement will deliver a high-quality first asset to our new fund. The variety of unit sizes is well placed to meet the regional demand profile, where occupiers of older industrial space are looking to expand, and will be delivered in a market with an acute undersupply of 30,000 – 150,000 sq. ft. units. We expect the very high existing power supply will be attractive to power-hungry occupiers.”
HBD were advised by Knight Frank, JLL and Squire Patton Boggs, with Oxenwood represented by M1 Agency, Jones Day and Langham Hall.
