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Next phase of St. Modwen Park Burton Commenced

Posted on by David Priestman

St. Modwen Logistics, one of the UK’s leading logistics developers and managers, and a Blackstone portfolio company, has commenced the final phase of activity at St. Modwen Park Burton, which will see the delivery of five high-quality logistics units totalling c. 400,000 sq ft.

Earlier this year, Blackstone announced that from July 2024, St. Modwen Logistics’ portfolio of assets will become part of Indurent, a new pure play UK logistics champion. The business will have more than 200 assets totalling 26 million sq. ft of logistics space.

The buildings at St. Modwen Park Burton range from 38,000 to 175,000 sq ft in size and will be built to St. Modwen Logistics’ industry-leading Swan Standard, a holistic set of guidelines to ensure sustainable construction. All units will be rated BREEAM ‘Excellent’ and will obtain either EPC A or A+ certifications. In addition, each building unit will offer Grade A office accommodation, vehicle charging points and rain water harvesting as standard, whilst units B79 and B173 will come equipped with rooftop solar PV to offset the operational energy usage of the office space.

This most recent phase of development will bring the total space at St. Modwen Park Burton to just under 1 million sq ft, with completion due early next year. Existing customers at the scheme include Hellmann Logistics, London City Bond, Keylite Roof Windows and Supply Technologies. St. Modwen Park Burton is also part of a larger 175-acre mixed-use scheme being delivered by St. Modwen, which includes more than 600 new homes as part of the urban extension to the south of Burton. The development also includes a retail centre as well as a large 160-acre woodland which is accessible to businesses on the park and the local community.

The quality and flexibility of units on offer will support both growing local businesses and blue-chip manufacturing and distribution companies looking to take advantage of the scheme’s fantastic transport links. The scheme offers direct access to the A38, with 90% of the UK population within a four-hour drive. 1,500 jobs will be created at the site, rendering it a key employment hub for the region.

Winvic Construction Ltd is the principal contractor for the scheme, having delivered other high-quality new units at the nearby St. Modwen Park Derby and St. Modwen Park Tamworth. St. Modwen has appointed the Birmingham offices of Knight Frank and Savills to market the units.

Rob Richardson, Development Director at St. Modwen Logistics said: “Having already successfully delivered more than 600,000 sq ft of prime logistics space at St. Modwen Park Burton, this latest phase of activity will further support local businesses and inward investors in accessing the industrial workspace and warehousing they need across Staffordshire.

“The site’s exceptional sustainability features and prime location, accessible to 90% of the UK population within 4 hours, make it an ideal logistics scheme for a diverse range of occupiers.”

Danny Nelson, Director of Industrial, Distribution and Logistics, added: “We’re delighted to be working with St. Modwen Logistics yet again to deliver five industrial facilities in Burton. Our companies have built a strong relationship over many years due to our aligned sustainability and quality values; the design ensures the offices will be operationally Net Zero Carbon and we will achieve at least 10% Biodiversity Net Gain. The team is looking forward to the 44 weeks of construction and handing over the scheme in February 2024.”

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Ground Broken on Logistics Gateway Development

Logistics Property Scheme Kick-off

Posted on by David Priestman

St. Modwen Logistics, one of the UK’s leading logistics developers and managers, has started construction on the first phase of its 1.2m sq ft scheme in Meaford. The company is regenerating the site of a former power station at St. Modwen Park Meaford and will firstly deliver two new sustainable warehouses totalling 112,000 sq ft.

Rated BREEAM ‘Excellent’ and with EPC A certification, the units will benefit from a wide range of measures to support occupiers in their net zero journeys and reduce operational energy consumption, including rooftop solar panels, smart LED lighting that reduces energy consumption by 10%, as well as EV charging points and smart metering.

Due for completion in Q4 2024, the first phase of development at the Park will include market-leading infrastructure and has already secured a much-increased power capacity of 9.2 MvA – making the entire Park suitable for advanced manufacturing companies and logistics occupiers alike. On top of the scheme’s main masterplan, the site can also deliver build-to-suit facilities of up to 633,000 sq ft within 12 months of an agreement, including cross docked units with outline planning permission already obtained. Detailed planning is in place for two large units of 193,000 sq ft and 359,000 sq ft and capable of delivery in 2026.

Logistics Property Scheme

The new phase of development at the Park will create hundreds of jobs and will also provide new green spaces alongside retained woodland, boosting local biodiversity and adding value to the local community.

The development builds on a £4.2 million investment of Government Growth Deal funding which delivered infrastructure works at St. Modwen Park Meaford, including a new roundabout on the A34, improvements to Meaford Road and a new access serving the Park. The work, which also received a significant funding contribution from St. Modwen Logistics, was carried out by Staffordshire County Council on behalf of the Stoke-on-Trent and Staffordshire Local Enterprise Partnership.

Situated between J14 and J15 of the M6 motorway, the logistics property scheme is strategically located on the M6 corridor. The development is situated just off the A34 dual carriageway, with access to the significant catchments of Stoke-on-Trent to the north and Stafford to the south.

Jake Shilston, Development Director at St. Modwen Logistics said: “Having successfully delivered over 2.2 million sq ft of high-quality logistics space in Stoke and secured a range of high-quality occupiers across our developments, this latest phase of development at our Meaford scheme builds on our exceptional track record in the region, helping to address the under-supply of best-in-class industrial workspace. Our capacity at Meaford to deliver a significant volume of additional space, with both detailed and outline planning in place, also positions us to meet the future demands of Staffordshire’s diverse customer base. With additional power of up to 9.2 MvA already secured, we have confidence in our ability to service the varied needs of businesses of all sizes based in the region.”

Philip White, Deputy Leader of Staffordshire County Council and Cabinet Member for economy and skills, added: “We have worked with St. Modwen Logistics from the start of site development at Meaford in 2016 to ensure access and connections to highways are delivered through the Government’s Growth Deal funding. Supporting business development and providing necessary infrastructure is a priority to the county council and we have a strong track record of working with developers as they bring sites like this forward. The logistics sector plays a prominent role in the local economy, creating thousands of jobs and attracting additional investment. St. Modwen Park Meaford is in a prime location close to both the M6 and A50/A500 corridors where we expect to see considerable jobs growth in coming years.”

St. Modwen Logistics delivered 1.3 million sq ft of modern warehouse space in 2023 and has a long-term pipeline of 23 million sq ft.

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Plans Approved for 670,000 sq.ft. UK Distribution Centre

 

Sustainable Gatwick Airport Warehouse

Posted on by Keith McKinley

St. Modwen Logistics, one of the UK’s leading logistics developers and managers, has completed the construction of a second warehouse at St. Modwen Park Gatwick for DHL Group. The company, which has been a tenant at the park since 2011 and already occupies a 64,000 sq ft unit, has signed a 15-year lease for the new facility.

The c.115,000 sq ft warehouse is set to achieve a BREEAM ‘Excellent’ rating and is EPC A+ rated, achieving the highest possible level of energy efficiency. The warehouse’s green credentials also include the installation of 1,900 sqm of PV panels on the roof to generate renewable energy needed to power the building’s 12,000 sq ft of Grade A office space and ensure it is net-zero carbon in operation.

Active and sustainable travel will be encouraged at the park with 28 EV charging spaces installed as well as the inclusion of cycle bays and shower and changing facilities. The landscaped site includes hedgerows and plants, which will result in a biodiversity net gain of 39%, as well as new amenity areas for both local communities and DHL Group staff, including a trim trail, cycle path and outdoor gym equipment.

Situated just 3km from Gatwick airport, alongside Junction 10 of the M23, St. Modwen Park Gatwick provides excellent links to central London. This location is beneficial to companies looking to be close to Gatwick Airport as well as to the main motorway routes into central London. DTRE and BNP Paribas are the retained leasing agents for St. Modwen Park Gatwick.

Ellen Thomas, Senior Development Manager at St. Modwen Logistics, commented: “We are proud to announce the completion of our new, sustainable warehouse at St. Modwen Park Gatwick for DHL Group. This is a state-of-the-art warehouse facility that will support up to 150 jobs, helping to sustain a thriving local economy. This is DHL Group’s second development on the site, underlining how we are working in partnership with our customers to deliver the high-quality, bespoke spaces they need to succeed.”

Jake Huntley, Partner at DTRE, commented: “We are observing more occupiers focusing on energy efficient accommodation and we are proud to have been able to offer St. Modwen Park Gatwick to environmentally conscious customers. The success of the scheme is testament to St. Modwen’s ability to deliver critical logistics infrastructure to the highest standards.”

Recognise Logistics Facilities as Critical Infrastructure

Posted on by David Priestman

St. Modwen Logistics, one of the UK’s leading logistics owners and developers, and property adviser Savills, have called for improvements to the planning system to support the growth of the logistics sector and encourage more development of modern, sustainable warehousing to keep pace with increasing demand.

According to analysis undertaken by St. Modwen Logistics and Savills, historic land constraints have suppressed industrial demand by 29% over the past decade. Over that period national availability has consistently been below the ‘equilibrium rate’ of 8% – the rate at which supply and demand are considered to be in balance – leading many fast-growing firms to halt their expansion plans, creating inefficiencies in supply chains. Savills calculates that annual demand for new logistics space exceeds the delivery of new units by 58%.

Responding to the UK Government’s call for evidence on the freight and logistics and the planning system, St. Modwen Logistics and Savills have recommended five key policy changes focused on enabling the planning system to better facilitate the freight and logistics sector’s growth:

• Implement a national policy recognising industrial and logistics facilities as critical national infrastructure and introduce guidance which recognises the importance of wider supply chain employment and the indirect gross value added (GVA) as part of the wider planning balance;
• Utilise the Savills / St. Modwen Logistics ‘Suppressed Demand’ Model within national planning practice guidance (NPPG) as the basis for assessing future demand for logistics space;
• Require local authorities to set five-year employment land supply targets, mirroring their approach to residential land supply;
• A more effective approach to strategic planning, favouring the reintroduction of a strategic tier of planning, helping to broaden planning authorities’ scope of considerations beyond housing market areas and travel to work patterns when assessing potential new logistics developments; and
• Implement a Government-led training programme to upskill local government planners, local members and planning inspectors on commercial markets and the key trends and market conditions that influence future logistics demand.

Together, these measures have the potential to enable the planning system to effectively fulfil its vital role in facilitating freight and logistics growth.

The logistics sector is the fastest growing commercial sector in the UK, and supports a growing, diverse and increasingly higher skilled workforce. The number of people employed across the sector has grown by 30% in the last ten years, versus 15% for the economy as a whole, and average pay within the sector is higher in all regions of England when compared to respective average regional earnings.

This is supported by evidence which shows that in the decade between 2011-2021, the share of higher-skill roles increased by almost a fifth (17%), with the biggest increase being in Professional Occupations, where roles have grown by more than a third (36%). These roles are typically associated with engineering and technological professions as the use of automation and robotics increases in the sector. There has also been an increase in the traditional office-based roles, with roles in this category up by 11% as more businesses choose to bring their operations under one roof and utilise the Grade A office space being provided by developers within warehouse buildings.

Overall, the logistics sector now contributes £238 billion of GVA to the economy each year, accounting for 14% of the UK’s total GVA.

Richard Hickman, Senior Director of Planning at St. Modwen Logistics, commented: “Logistics is a high-productivity and high-growth sector and one of the engines of the national economy, supporting an increasing number of high-skilled jobs across the country. The policy changes we recommend would unlock the delivery of high-quality new warehouse space in the locations where it is most needed.”

Mark Powney, Director of Economics at Savills, added: “The logistics sector has been the fastest growing commercial sector in the UK for over a decade. Jobs in the sector pay better than the national average across an increasingly diverse range of occupations. It is time the planning system takes measures to plan proactively for commercial uses in order help our struggling economy. As part of this, improving the way we plan for the strong demand from logistics occupiers must be a major focus.”

St. Modwen Logistics Acquires Distribution Hub

Posted on by David Priestman

St. Modwen Logistics, one of the UK’s leading logistics owners and developers, has acquired a 267,000 sq ft logistics unit in Bilston, Wolverhampton, West Midlands.

The unit, known as the Titan 10 Distribution Centre, is let to Pallet-Track, one of the UK’s fastest growing palletised freight distribution companies, originally formed in nearby Wednesbury. The facility has been home to Pallet-Track for more than 15 years and serves as its central UK hub, handling an average of 8,000 pallets per night and servicing its distribution network depots.

Located in the heart of the Midlands, the building is just a ten-minute drive from junction 10 of the M6 motorway corridor and is only 15 miles from Birmingham city centre, offering excellent national road connectivity. It sits in the UK’s logistics ‘golden triangle’, from where 90% of the UK population can be reached within four hours’ drivetime.

James Cooper, Head of Transactions at St. Modwen Logistics, commented: “This transaction represents a rare opportunity to acquire a high-specification distribution facility which is let to a leading UK business, in the ‘golden triangle’. This asset is a great example of the business-critical logistics facilities we are acquiring as part of our wider aggregation strategy.”

Commenting on the deal, Andrew Franck-Steier, Director at Atlas Real Estate, said: “We were delighted to be asked to sell the asset and it was great to have been involved in both the original funding and sale of the deal.” Atlas Real Estate acted for the vendor and Acre Capital Real Estate acted for St. Modwen Logistics.

St. Modwen is a property developer and manager owned by Blackstone focused on logistics and housebuilding. St. Modwen Logistics develops and manages urban and big box warehouses for customers including global logistics and e-commerce organisations as well as significant national and regional enterprises.

Modern Warehouse Space Meets Local Demand

Posted on by Keith McKinley

St. Modwen Logistics, one of the UK’s leading logistics developers and managers and a Blackstone portfolio company, has announced today that two local businesses have committed to a total of 62,000 sq.ft of modern warehouse space at St. Modwen Park Broomhall in Worcester, significantly expanding their operations in the area.

OBEX Protection, which manufactures and distributes protective construction solutions, has agreed to lease 47,000 sq.ft at the Park. OBEX, which will retain a 27,000 sq.ft base of operations at St. Modwen’s nearby Nunnery Park scheme, is taking this additional space to increase its manufacturing and distribution operations in response to a rapid growth in demand for its products in recent years.

Automotive and tech distribution company Nemesis is also following suit and will almost double its footprint with St. Modwen by signing for 15,000 sq ft of space at SMP Broomhall whilst retaining its 19,000 sq ft unit at Nunnery Way.

Planning permission for the third and final phase of development has also been secured with the construction of two units – 40,000 sq.ft and 32,000 sq.ft – set to begin later this summer. The development will create 95 jobs across a diverse range of employment types and has been supported by local employment groups including Worcestershire Education Business Partnership and the LEP Skills team.

Situated on the southern outskirts of Worcester, St. Modwen Park Broomhall is located just one mile from Junction 7 of the M5, which provides easy access to the wider Midlands, the South West and South Wales, as well as the wider national infrastructure networks. The Park benefits from a strong workforce catchment located within five miles of the site and has been delivered in line with St. Modwen’s ‘Swan Standard’ of sustainable development, benefiting from an EPC A rating and EV car charging provision, and achieving net zero embedded carbon.

Peter Davies, Development Director at St. Modwen Logistics, commented: “Supporting customers and helping them to grow is the cornerstone of our business and so we were naturally delighted when both OBEX and Nemesis asked us to support them again with their expansions. It’s fantastic to see two local businesses growing in this way, and even better that they are able to remain in the local area as a result of our development at St. Modwen Park Broomhall.

Rob Francis, Director, OBEX Protection, said: “Following a period of rapid growth, we are excited to announce an expansion into a new 47,000 sq.ft unit which will provide crucial support for our operations. It was important for us to remain in Worcester where the company was founded and having worked closely with St. Modwen since July 2020 we had no hesitations about agreeing a deal to move in to St. Modwen Park Broomhall.”

Chris Chance, CEO at Nemesis, added: “There is a dearth of modern, high-quality warehouse space in the area that supports our long-term sustainability goals. We are very pleased to a have secured new premises at Broomhall which will allow us to maintain our trajectory and attract the staff we need.”

St. Modwen is a property developer owned by Blackstone focused on logistics and housebuilding. St. Modwen Logistics develops and manages urban and big box warehouses for customers including global logistics and e-commerce organisations as well as significant national and regional enterprises.

Speculative Development for St. Modwen Logistics

Posted on by Keith McKinley

St. Modwen Logistics, one of the UK’s leading logistics developers and managers and a Blackstone portfolio company, has announced that it will soon deliver c. 450,000 sq ft of warehouse space at St. Modwen Park Chippenham, including the company’s largest speculative development in the region, a 342,000 sq ft warehouse unit.

The development, which is under construction by Winvic and is set to complete in summer 2023, also includes an additional 110,000 sq ft unit, with both warehouses built to St. Modwen’s Swan Standard guidelines for environmentally friendly construction. St. Modwen Park Chippenham is already home to businesses including Huboo and FurnitureBox.

The buildings are being built to high environmental standards and targeting a BREEAM ‘Excellent’ rating. Sustainable features of the new warehouses include solar PV panels, which generate a significant proportion of clean energy used by the offices, making them net zero carbon in operation. The developments will also include a proportion of parking spaces reserved for electric vehicle charging points, and smart energy management systems which contribute to an EPC A+ rating.

Once built, the new warehouses will have the potential to employ up to 600 people in the Chippenham area, which benefits from a strong local labour force and excellent transport links. Strategically located adjacent to the M4, the site benefits from being less than a mile from Junction 17 and is ideally placed for nationwide distribution.

This latest project further demonstrates St. Modwen Logistics commitment to the region, with 860,000 sq ft of development work scheduled for completion in 2023. Work is progressing on three new units at St. Modwen Park Access 18 Avonmouth, whilst in nearby South Wales, four new warehouse units at St. Modwen Park Newport were recently completed to meet the demands of businesses in the region.

Peter Davies, Development Director, St. Modwen Logistics, said: “Chippenham benefits from its access to a skilled local labour force and its strategic location at the gateway to major consumer markets in the South West of England and South Wales. However, there is an acute undersupply of high-quality warehousing and we are responding to that by delivering new schemes capable of creating hundreds of jobs for local people and providing occupiers with fit-for-purpose, sustainable logistics space.

“Our decision to progress with the expansion of St. Modwen Park Chippenham and the delivery of our largest ever speculative development is testament to both the strength of the business’ investment and development expertise, and to the resilience of occupier demand in the South West.”

Winvic’s Head of Industrial, Distribution and Logistics, Danny Nelson, added: “We’ve been making excellent progress on the two warehouse facilities in Chippenham, and we’re proud that one is St. Modwen’s largest speculative development. Working in partnership with the St. Modwen team, Winvic has focused on the requirements of tenants and have designed and constructed these buildings with sustainability at their heart.

The new developments support the continuing expansion of St Modwen’s logistics platform, which was acquired by Blackstone, the world’s largest alternative asset manager, in 2022. Since then, the business delivered 2.2m sq ft of developments with industry leading ESG credentials. In addition, over 1 million sq ft of space has been acquired in the last 6 months.
Chippenham is recognised as a major commercial location in North Wiltshire, benefiting from a strong local labour force and excellent transport links. 56% of local residents are aged between 16-44 and 77% live and work locally. There is significant opportunity to create high-quality, high-paying job opportunities in the region for local workers of a variety of ages and education levels, with St. Modwen Logistics’ schemes providing office space as well as warehousing, supporting managerial and administrative functions alongside manual logistics roles.

4 New Logistics Units Completed in Wales

Posted on by Keith McKinley

St. Modwen Logistics, one of the UK’s leading logistics developers and managers, has completed the construction of four new high-quality, sustainable warehouses totalling c. 116,000 sq ft at St. Modwen Park Newport in Wales. Developed in response to growing demand in the region and to support business growth, one building totalling 17,000 sq ft has already been pre-let to adhesive manufacturer Ureka Global.

The quartet of buildings are EPC A-rated and hold a BREEAM ‘Very Good’ accreditation, helping potential occupiers meet their own ESG targets and reduce energy usage through the inclusion of a range of energy-efficient features. Built in line with St. Modwen’s ‘Swan Standard’ approach to sustainable construction, the buildings feature intelligent and sustainable LED lighting, smart metering and rainwater harvesting. Air source heat pumps are used for heating the office elements of the warehouses and solar (PV) panels on the roofs provide a proportion of the power for each unit, as well as encouraging greener ways of commuting through the inclusion on EV charging points and dedicated cycling routes.

St. Modwen Park Newport is strategically located to provide excellent connectivity to South Wales and South West England, with Junction 23A of the M4 motorway within two miles of the park via Queen’s Way, and Cardiff and Bristol reachable within 12 miles and 30 miles respectively. The estate and surrounding area benefit from the de-tolling of the Severn Bridges, further enhancing its accessibility by road.

116,000 sq ft of space completed with 17,000 sq ft pre-let

The delivery of these warehouses takes St. Modwen Park Newport to c.345,000 sq ft of warehouse space and the estate is already home to the likes of Amazon, Genpower, CAF and Mitel. Phase 4, which comprises an additional 263,000 sq ft of best-in-class logistics space, is due to complete in Summer 2023.

Mark Snow, Senior Development Director, at St. Modwen Logistics, commented: “St. Modwen Park Newport is located in Wales’ fastest-growing city, with nearly half a million people within a 30 minute drive, which underpinned our decision to bring these units forward speculatively. The park is already home to a number of leading businesses and has a range of warehouse uses, and the addition of over 100,000 sq ft of modern logistics space will provide opportunities for companies to grow, supporting a diverse mix of employment opportunities.”

Alex Nunn, Managing Director, Ureka Global, said: “After a period of sustained growth, we are incredibly excited to be moving into our new building at St. Modwen Park Newport. Having access to the M4 and wider motorway networks is critical to our business and, having looked at various locations, it quickly became apparent that Newport was the perfect spot for us.

“This move will allow us to bring all of our stock under one roof and ensure we are able to continue delivering for our customers to help them out of whichever sticky situation they find themselves in.”
Councillor Jane Mudd, leader of Newport City Council, said: “It’s fantastic to see St. Modwen investing in speculative builds at St. Modwen Park Newport. This reflects the confidence they have in Newport as a city, recognising our fantastic connectivity, availability of workforce, and the great quality of life we can offer. The fact that the new units have already attracted interest demonstrates this confidence is well placed, and we’d like to welcome Ureka Global to Newport. The new jobs and investment they bring enhances our reputation as a place to come and do business.”

Warehouse Acquisitions in Birmingham, Manchester

Posted on by Keith McKinley

St. Modwen Logistics, one of the UK’s leading warehouse developers and managers, has completed two acquisitions in Birmingham and Manchester as it continues to expand its portfolio in major cities across the country.

Network Park industrial estate is situated 1.7 miles from Birmingham City centre and was constructed in the early 2000s, comprising six high-quality modern warehouse units totalling c.80,000 sq ft.

In Manchester, St Modwen Logistics has also acquired Ashburton Park. The c.95,000 sq ft estate is prominently located 3 miles from Manchester City centre at the heart of Manchester’s Trafford Park, one of the largest and most successful business parks in Europe, which is home to over 1,300 businesses employing over 35,000 people.

James Cooper, Head of Transactions, at St. Modwen Logistics, commented: “These acquisitions further expand our footprint in two of the UK’s most established and competitive industrial and logistics locations, offering our customers access to national and international distribution networks, as well as to large urban populations which increasingly value next-day and same-day delivery services.

“We are continuing to explore additional opportunities to grow our portfolio through the development and acquisition of best-in-class logistics space in areas of structurally high demand.”

St. Modwen is a property developer owned by Blackstone focused on logistics and housebuilding. The company aims to deliver for customers through two dedicated businesses: St. Modwen Logistics, which designs, builds, owns and manages high-quality logistics assets in the UK, and St. Modwen Homes, which creates high-quality, contemporary new homes.

St. Modwen Logistics develops and manages urban and big box warehouses for customers including global logistics and e-commerce organisations as well as significant national and regional enterprises. We aim to deliver c. 2.2m sq ft of new warehouse space during 2022 and have one of the UK’s largest pipelines at c. 19m sq ft.

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