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Huge speculative warehouse planned for Yorkshire

02 July 2024

Real estate developer Panattoni, is set to develop a 770,000 ft2 speculative warehouse in Yorkshire after securing forward funding through Barings to acquire and develop a 65 acre site on the  Nottinghamshire/Yorkshire border.

By Liza Helps Property Editor Logistics Matters 

THE SITE which was bought off market from Mulberry Developments already has planning for 1.2 million ft2 of industrial and logistics space. It is part of an overall 396-acre scheme bought forward by Mulberry in 2020. In 2021 3PL Eddie Stobart - now Culina - agreed a pre-let on two facilities totalling 1.13 million ft2. 

This new two-phase development, called Panattoni Central A1(M), is located at the Blyth Interchange on Junction 34 of the A1(M). The first phase will be forward funded through Barings’ BREEVA II fund, which has an option to acquire the second phase at a later date.

Panattoni will commence construction of what it claims will be the largest-ever speculative logistics unit in the north of England, a building of 770,000 ft2, in the autumn.  Practical completion is expected in September 2025. 

The facility, known as Panattoni 770 Central A1(M), will target BREEAM Outstanding and an EPC A+ rating and will be constructed net zero carbon. The cross-docked unit will have 18m eaves, 55m service yards, EV van and car charging and 15% rooflights.  Winvic Construction has been appointed as the contractor.

The remaining 27-acre plot, which is under option to Barings, already benefits from reserved matters planning consent for a 461,000 ft2 building and will initially be marketed on a build-to-suit basis. 

Panattoni remains focused on the big box market, where there is a scarcity of supply and strong demand for units of 400,000 ft2 and above. 

Panattoni Head of Development North West & Yorkshire Dan Burn said: “The development provides us with the opportunity to capitalise on the dearth of supply of XXL units across the country”. 

Barings Director, UK Real Estate Acquisitions Henry Marlow agreed: “The ability to deliver a near 800,000ft2 unit provides a rare and extremely attractive opportunity in a market segment which is particularly devoid of supply but contrasting with a healthy number of current tenant requirements.”

The transaction is the sixth acquisition that Barings has completed in the European logistics market this year which includes two further logistics property transactions on behalf of BREEVA II, at Mantua in Italy and in Lisbon in Portugal. Barings, on behalf of BREEVA II, has also recently achieved practical completion on its Momentum London site which comprises almost 400,000 sq ft of urban logistics space in Rainham, East London.

Barings Managing Director and Portfolio Manager Rory Allan, said: “Logistics continues to be a key conviction sector for Barings with its favourable macro drivers and this most recent acquisition will complement BREEVA II’s existing multi-jurisdictional portfolio which extends to over 7 million ft2. The current market dislocation presents a compelling opportunity to deploy capital in prime locations at heavily corrected pricing and we are actively assessing further logistics investments in our preferred Western European markets of France, Germany, Iberia, Italy, the Netherlands, Nordics and UK.

Panattoni was advised by Cushman & Wakefield and Mulberry Developments was advised by M1 Agency.