Industrial and logistics REIT Urban Logistics is forward funding 200,000 sq ft of warehouse space in two schemes in the East Midlands to the tune of £23 million.
It has exchanged contracts with Wilson Bowden Developments for the forward funding of five high-quality urban logistics assets at Nottingham and Leicester. Four units totalling 166,330 sq ft will be speculatively built on an 8.1-acre plot at Blenheim Park in Nottingham, while a further 43,850 sq ft unit will be built on a 2.5-acre site at Optimus Point, Leicester. The deal is subject to planning.
Both schemes will be built speculatively with construction expected to commence in September 2021. Practical completion is anticipated between September 2022 and February 2023.
Richard Moffitt, Chief Executive, said: “Covid-19 has highlighted the importance of warehousing and logistics real estate, especially the scarce, high-quality, single-occupier regional and last mile urban properties on which the Company focuses.
“The development programme announced today, which we have sourced off market, will add further high-quality new assets to the Company’s portfolio at a time when smaller urban logistics warehouses are in short supply.
“Given the strength of demand for space from occupiers seeking representation in the East Midlands market, we expect to achieve favourable lease terms on each of the assets with high quality tenant counter-parties.”