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Boughey secures third Midlands warehouse

11 January 2024

3PL Boughey Distribution has taken Aver Properties’ £34 million 332,000 ft2 speculative warehouse known as Lymedale 332 at Lymedale Business Park in Newcastle-under-Lyme - its third in the Midlands - as part of expansion plans.

By Liza Helps Property Editor Logistics Matters

BOUGHEY DISTRIBUTION backed by parent company NWF Group has agreed a 15 year lease with a tenant only break clause after 12 years. NWF Group stated that the investment follows on from the success of the Group's Crewe 240,000ft2 warehouse, which opened in 2020, and is in line with the Group's strategy for its food business to target warehouse expansion backed by customer and retailer demand.

NWF Group chief executive Chris Belsham, said: "We are delighted to start the new calendar year by announcing the signing of the agreement to lease Lymedale. The addition of 52,000 pallet spaces in our food business allows us to meet the growing demand and will drive further growth in line with our strategy for our food business. Once opened, we will have nearly doubled our capacity in food over the last five years and transformed the contribution of the business to the Group's growth and profitability."

In its first full financial year of operational activity, the year ending 31 May 2026, Lymedale is expected to deliver additional annualised operating profits of approximately £2.8 million.

The fit out of the warehouse, which is expected to be in the region of £8.5 million, will commence immediately with initial stock anticipated to arrive at the end of March/early April. The site is expected to be fully operational by the early Autumn of this year.

The newly constructed warehouse is conveniently located close to the M6 and the Group's existing sites in Crewe and Wardle, allowing the business to utilise its in-house expertise to bring the Warehouse into operation.

The property boasts 312,287 ft2 warehouse with 15,744 ft2 two storey offices as well as a further 4,238 ft2 hub office and 210 ft2 gatehouse situated on a a 15.9 acre plot. It has an 88m secure yard, 18m eaves and 32 dock and four level access doors as well as car parking for 282 car and space for 57 trailers and five tractor units. It has been built to BREEAM Very Good and an EPC A rating.

The property increases Boughey’s overall storage capacity to 187,000 pallet spaces. Two hundred and fifty local jobs will be created to service the new warehouse.

Speaking about the new acquisition, Boughey Distribution Managing Director Angela Carus said: “Demand for space from our existing customers and newly acquired business is on the increase which is great news for us.

“Our industry is constantly evolving and requires quick reactions and total flexibility for customers. For example, the biggest challenge during 2023 was managing unpredictable retail demands because of the current cost-of-living crisis and poor summer weather which both affected sales for our customers. This instability had a knock-on effect on customer stockholdings which created pressure on warehouse space.”

The property was developed by Cole Waterhouse and Peveril Securities and forward funded by Aver, a joint venture between NFU Mutual and Ergo Real Estate.

Planning for the warehouse to be built on the former Stoke Speedway site at Lymedale Business Park, was granted in July 2020. 

Joint letting agents were CBRE and Cushman & Wakefield.