St Modwen Logistics is investing a further £126m (€144m) to build warehouse and office space in the south-west of England.
The UK developer, taken private by Blackstone last year, said it believed there was enough demand in the region to fill 885,000sqft of industrial space across three separate sites in Avonmouth, Chippenham and Newport.
It cited research by consultancy EY, which identified it as one of the fastest growing economic regions in England.
Up to 1,200 jobs are also expected to be created across the region as a result of the new developments.
As well as warehouse space, St Modwen will construct around 50,000sqft of offices across the eight units it is plans to build.
In Avonmouth, 157,000sqft of space will be developed as three units at St Modwen Park Access 18, with a planned completion date of May 2023. Work on St Modwen Park Chippenham began earlier in September and comprises two units totalling 452,000sqft. Completion is set for July 2023.
At St Modwen Park Newport, the developer is building three units totalling 274,000sqft, creating more than 350 jobs, with a planned completion date of summer 2023.
St Modwen said the developments were aligned with the government’s ‘levelling up’ agenda and would contribute to the economic growth of the region and allow local businesses to increase productivity.
Polly Troughton, managing director of St Modwen Logistics, said: “Demand for warehouse space in the south-west continues to be high and the region has recently experienced its best quarter for take-up levels since the end of 2020.
“As a result, locations such as Chippenham, Avonmouth and Newport have become prime spots for businesses – leading to a scarcity of warehouse space in these areas.
“Through the much-needed development of almost 900,000sqft of new space, we are meeting high levels of demand and encouraging economic growth in the south-west.”
The units will be built to achieve EPC A and BREEAM Excellent ratings, and those of more than 70,000sqft will include EV charging points and solar panels as standard.
Troughton said that biodiversity was also a key consideration and that its St Modwen Park Access 18 at Avonmouth would include 55 acres of green space and waterways, enhancing the ecology of the development and providing natural habitats for local wildlife.
The developments in Chippenham and Newport will also incorporate sustainable drainage and landscaping to enhance the biodiversity of the sites, while the external park spaces will provide exercise and relaxation areas for park employees.
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