Plans are in train for six new logistics facilities around the M1 which will provide a total of one million square foot of storage space.
NFU Mutual is investing £100m with Clowes Developments to fund the project which will see the delivery of six new Grade A logistics warehouses, let across three of Clowes Development’s sites – Castlewood Business Park at Junction 28 of the M1, near Nottingham, Centrix Park, near Corby and East Midlands Distribution Centre (EMDC) at Castle Donnington.
Of the six facilities, five will be speculative and the sixth a pre-let. The size of the units will range from 58,586 sq ft at Centrix Park to a unit of almost 250,000 sq ft at EMDC.
The pre-let unit, which will be occupied by Deichmann-Shoes UK, totals 162,500 sq ft and is located at Centrix Park. The property has already been granted planning permission and contractors, Winvic Construction, are on site. Practical completion is set for January 2022.
Two units of 176,817 sq ft and another of 134,192 sq ft will be developed on the last two plots at the 120-acre Castlewood Business Park, while at EMDC there will be two larger buildings of 189,573 sq ft and 249,418 sq ft.
James Richards, director at Clowes Developments, said: “The deal demonstrates confidence in the marketplace. For NFU Mutual to entrust a significant amount of capital in Clowes Developments is recognition for how far the group has come.
“This deal is by far the biggest transaction we have concluded as a group to date, but we have other deals in the pipeline, and this is an exciting time for the company.
Paul Shanley, director at Clowes Developments, added: “The deal with the NFU Mutual is a departure from our group’s normal internal funding arrangements, primarily due to the size of the proposal. The financial strength of our group and reputation for delivery was a major factor in us being approached by NFU Mutual.
“Planning applications, where applicable, are ready to go and we expect to see site activity from late summer onwards. With the current shortage of good quality ‘big shed’ stock, the timing would appear just right to take advantage of market conditions.”
Jon Brice, NFU Mutual, said: “NFU Mutual is delighted to be working with Clowes Developments to bring through the development of these six prime industrial buildings in three prominent locations around the M1.
“This project forms a key part NFU Mutual’s strategy and we are excited to be partnering with Clowes Developments to deliver best in class space to the market.”
NFU Mutual was advised by Gowlings WLG, PSK and Burbage Realty.