M&G Real Estate (M&G) will begin construction of its largest speculative industrial development to date after securing planning consent for a three-unit 820,000 sq ft distribution warehouse at the 40-acre Brackmills Industrial Estate in Northampton acquired in 2012.
M&G is partnering with Newlands Developments to build the scheme at Brackmills, which has established itself as one of the UK’s most important logistics hubs and is home to a number of multinationals which have significantly invested in the location. It is on track for completion in Q3 2022.
The Net Zero Carbon development will be designed to meet best in class sustainability criteria, placing it on track to achieve a BREEAM rating of Outstanding and an EPC A+ certification. M&G has also committed to additional investment on the original design to further strengthen its sustainability credentials by incorporating extensive electric vehicle charging provision, solar-ready warehouse roofs, rainwater harvesting and a solar thermal hot water system.
Located within the Golden Triangle, an area in the East Midlands renowned for its high density of distribution facilities, the asset has easy access to major motorways, ports, railways, and airports, enabling deliveries to reach more than 90% of the UK population within four hours. The location will be highly attractive to potential retail and logistics occupiers looking to capitalise on the continued rise of e-commerce and the need for more high quality space to hold stock of key items, as record numbers of consumers make their purchases online – a trend vastly accelerated by the Covid-19 pandemic.
John Duxbury, Head of UK Portfolio Asset Management at M&G Real Estate, comments: “As demand for prime logistics space continues to grow, we believe a restricted supply of available product could present attractive opportunities to achieve rental growth and generate sustainable, long-term returns for our investors. We are targeting large lot sizes and continue to explore speculative development opportunities to achieve our objectives, forming partnerships where necessary. The development will be one of the most sustainable of its kind in the UK and demonstrates M&G’s ability to deliver high quality ESG-led schemes which meet the exacting requirements of modern occupiers.”
John Barker, Development Director at Newlands Developments, adds: “We are delighted to be working alongside M&G Real Estate on this exciting re-development project at Brackmills Gateway, which will provide best in class speculative units of circa 387,000 sq ft, 252,000 sq ft and 180,000 sq ft on one of the most established industrial estates in the UK. Construction is due to start in the coming weeks and we are already in discussions with a number of potential end users.”
