Amazon DC completes Redditch Gateway phase one

Leading commercial property developer Stoford has completed work on the first phase of a £200m build-to-suit logistics and manufacturing scheme near Redditch, UK.

Unit A is a new 534,000 sq ft (50,400 sq m) warehouse building with a mezzanine floor and integral office space that lies to the north of the 78-acre Redditch Gateway site, near Junction 3 of the M42.

The development, which has been pre-let to multinational technology company Amazon, was funded by Royal London Asset Management (RLAM) and has an end value of c.£86m.

Redditch Gateway has capacity for up to one million sq ft (92,900 sq m) of brand new office, logistics and manufacturing accommodation when complete.

Two additional build-to-suit units of between 150,000–250,000 sq ft (14,000-23,000 sqm) are available to the south of the site, which is now fully serviced and delivers a 9.5MVA power supply. The accommodation will include integral office space, a secure yard and parking, with a total space of c.450,000 sq ft (c.41,800 sq m).

Dan Gallagher, Joint Managing Director, Stoford said: “With the first unit at Redditch Gateway now complete, we are working to deliver the next phase in this exciting scheme. Redditch Gateway is located in a prominent distribution area of the Midlands, with a skilled local labour force and excellent transport links via the national motorway network. There is huge pent up demand for logistics and manufacturing accommodation of this size and quality in the West Midlands and we are anticipating significant interest in the next phase.”

Gary Woodman, Chief Executive of Worcestershire Local Enterprise Partnership (WLEP), said: “I am pleased to see the first phase of work completed at the Redditch Gateway site. Increasing jobs in the county is a key objective for Worcestershire and this investment from Amazon will help to bring jobs and economic benefits to the county, helping the county to bounce back from the shock of the COVID pandemic. As part of our Plan for Growth strategy for 2040, I look forward to seeing the delivery of further phases of this project to help us achieve our vision of making Worcestershire a connected, creative, dynamic economy for all.”

Anita Bhalla, Interim Chair, Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP), said: “It is fantastic to see Redditch Gateway reach this latest milestone, as it demonstrates how our investments are delivering for our local people and businesses. We allocated £1.8m from our £208m Local Growth Fund programme to this project. It’s great to see that Amazon has already signed up to move in and we can expect further tenants in the next phase. In the last decade, GBSLEP’s unique structure of bringing together public, private and academic partners has helped unlock many commercial sites like this one, helping drive inclusive economic growth across our region.”

Worcestershire County Council Cabinet Member with Responsibility for Economy and Skills, Councillor Marc Bayliss, said: ”It is great news for the county as construction is progressing well at the Redditch Gateway site and a world renowned name such as Amazon has been named as tenants and will have a base in our county. It’s another clear and visual indication of the progress we have made over recent years, as we continue to develop the county’s economy and bring with that substantial economic benefits.”

Councillor Matt Dormer, Leader of Redditch Borough Council, said: “Exciting times are underway for Redditch and with the completion of the first phase of the Gateway development this proves that this Council is committed to unlocking the potential of this Borough and we are delivering on our promises. And we’re not resting on our laurels and will continue to work with partners to push through the second phase of the development which, along with the Town Deal, will complement our plans to regenerate Redditch. I am proud of this town and can’t wait to see it flourish, creating jobs for our residents and boosting the local economy.”

Councillor Tony Jefferson, Leader of Stratford-on-Avon District Council, said: “This scheme will be a real tonic to the economic development of the area and will create a great many employment opportunities. The arrival of an organisation like Amazon is a real plus.”

Tim Davies, Senior Development Manager, Homes England, said: “This is exciting news for the project which has been the result of many years of brokerage behind the scenes. Homes England look forward to receiving proposals from Stoford for the remaining land.”

Redditch Gateway is located off Gorcott Hill and the A4023 Coventry Highway on the eastern fringes of Redditch, just 18 miles (29km) from Birmingham Airport. The site falls into two local authority areas, Stratford-on-Avon in Warwickshire to the north and Bromsgrove district to the south.

Stoford has been appointed as development partner for Redditch Gateway, working alongside the two landowners, The Gorcott Trust and Homes England. The scheme is being supported through a blend of grant and loan funding of £1.7m from WLEP and a £1.8m grant from GBSLEP.

Redditch Gateway is being marketed by Burbage Realty, Colliers International and Savills.