Forward funding deal for major new logistics development
A FORWARD funding deal has been signed which will enable almost 450,000 sq ft of new industrial space to be built in the West Midlands.
Stoford has agreed terms with London-based real estate investor Blackbrook to build a brace of logistics facilities on the Redditch Gateway project, near junction three of the M42.
The Birmingham-based developer will speculatively build two grade A warehouses as part of the second phase of Redditch Gateway, comprising 160,208 sq ft and 286,328 sq ft at the southern end of the 78-acre site.
Blackbrook will acquire the freehold interest in both new developments upon their completion, which is expected to be towards the end of next year. Terms of the funding deal were not disclosed.
Planning consent has already been secured after an application was lodged during the summer.
Stoford’s joint managing director Dan Gallagher said: “We are very pleased to have reached an agreement
with Blackbrook to deliver this best-in-class development, serving the supply-constrained, south-Birmingham market.
“Redditch Gateway has already provided significant inward investment and many new jobs for the area and this final phase will generate more sustainable and local employment for Redditch.”
Blackbrook’s managing director Jon Strang added: “Across the UK, there is a shortage of facilities that can provide the high-power supply that today’s occupiers are looking for, particularly with the onset of automated warehouses and electric vehicles.
“To meet this growing demand, and in line with Blackbrook’s strategy to develop future-proof, supplychain infrastructure, we are delighted to be working with Stoford to bring to the market two new facilities that will be built to the highest sustainability standards.”
The overall plan for Redditch Gateway is to create almost one million sq ft of brand new office, logistics and manufacturing accommodation.
Stoford is the scheme’s development partner, working alongside landowners The Gorcott Trust and Homes England.
Property agencies Savills and CBRE and law firms Knights and Allen & Overy also acted on the deal.