M&G Real Estate (M&G) has announced plans to commence construction of its largest speculative industrial development to date, after securing planning consent for a three-unit, 820,000 ft2 (76,200 m2) distribution warehouse.
Financial details were not disclosed.
M&G is partnering with Newlands Developments to build the scheme at the 40-acre (16 ha) Brackmills Industrial Estate in Northampton, which M&G acquired in 2012. The scheme is on track for completion in Q3 2022.
John Duxbury, head of UK portfolio asset management at M&G Real Estate, said: 'As demand for prime logistics space continues to grow, we believe a restricted supply of available product could present attractive opportunities to achieve rental growth and generate sustainable, long-term returns for our investors.
'We are targeting large lot sizes and continue to explore speculative development opportunities to achieve our objectives, forming partnerships where necessary. The development will be one of the most sustainable of its kind in the UK and demonstrates M&G’s ability to deliver high quality ESG-led schemes which meet the exacting requirements of modern occupiers.'
The net zero carbon development is targeting a BREEAM rating of Outstanding and an EPC A+ certification. M&G has also committed to additional investment on the original design to further strengthen its sustainability credentials by incorporating extensive electric vehicle charging provision, solar-ready warehouse roofs, rainwater harvesting and a solar thermal hot water system.
Located within the Golden Triangle, an area in the East Midlands renowned for its high density of distribution facilities, the asset has easy access to major motorways, ports, railways, and airports, enabling deliveries to reach more than 90% of the UK population within four hours.
John Barker, development director at Newlands Developments, added: 'We are delighted to be working alongside M&G Real Estate on this exciting re-development project at Brackmills Gateway, which will provide best in class speculative units of circa 387,000 ft2, 252,000 ft2 and 180,000 ft2 on one of the most established industrial estates in the UK. Construction is due to start in the coming weeks and we are already in discussions with a number of potential end users.'
