M&G Real Estate is to fund the construction of two warehouses totalling 400,000 sq ft at Harworth Estates’ four million sq ft Logistics North scheme in Bolton.
The two buildings will be of 225,031 sq ft and 175,087 sq ft and will be built by Harworth Estates. Harworth has already started ground works and intends to begin construction of the two facilities in early 2016.
David Crowley, director of logistics and industrial at M&G Real Estate, said: “There is a limited supply of grade A warehouses of this size in the region, and with tenant demand remaining resilient and rental growth evident due to limited building supply, this investment provides us with access to prime, well-specified and located assets.
“It also supports our continued strategy to selectively increase our exposure to the sector across the country, providing the long-term investment that will help drive economic growth. Equally it draws on the longstanding and proven skills, expertise and experience of our specialist team to secure the right acquisitions with clear income potential and strong returns.”
Phil Wilson, executive director of Harworth Estates, added: “This transaction with M&G Real Estate is the first institutional funding at Logistics North and reflects the quality of the development and its prime position in the North West commercial market.
“The strength of demand for high-quality logistics space in the North West has already led to Aldi, MBDA and Joy Global becoming occupiers on the development and we look forward to welcoming others in due course.”
B8 Real Estate acted for M&G Real Estate, while JLL and DTZ represented Harworth.