Commercial property provider º£½ÇÊÓƵ Land Estates has committed to investing £35m in the North East over the next two years.
The Gateshead-based owner of industrial estates across the region says it has ringfenced the sum to build more than 270,000 sqft of Grade A industrial and warehousing space during this year and next. It has also earmarked £12m to refurbish and retrofit a number of units across its business parks.
All of the upcoming schemes are speculative, with 200,000 sqft planned on its flagship Team Valley Trading Estate site and 25,000 sqft in Teesside. That comes in addition to a further 600,000 sqft's worth of outline consents the business has, or is in the process of acquiring.
Keith Taylor, managing director of º£½ÇÊÓƵ Land Estates, said: “There is still a supply and demand imbalance in the region for high quality, well located industrial space, evidenced by our recent building programme and successful leasing activities. Last year, we brought several new units to market, ranging from 9,000 sqft to 72,000 sqft, to fit a range of industry sectors and sizes and the team delivered a superb product, with most letting on or before practical completion.
"With all of our speculative schemes benefitting from both B2 and B8 consents, the flexibility caters for the increased demand for logistics and warehousing space as increasing numbers of businesses shift to trading online, but also the region’s growing advanced manufacturing and engineering industries.
“We’re blessed as a region to have an incredibly skilled workforce and great location, which is why so many businesses want to invest here, however if we are to continue building on this momentum then we must ensure we have the space available those seeking to grow or relocate here, and hopefully these develops can help us ensure that."
The forthcoming investment follows £20m already poured in to º£½ÇÊÓƵ Land Estate's portfolio last year - including the construction of five new units at Team Valley Trading Estate, Nelson Park Industrial Estate, Teesside Estate and Tyne Tunnel Trading Estate. Those schemes included a 72,898 sqft industrial and warehousing facility at Tyne Tunnel Trading Estate, a new drive-thru Starbucks at Teesside Estate and three speculative industrial units and a 44,000 sqft building for electronics manufacturer Legrand at Cramlington’s Nelson Park Industrial Estate, which is currently under way.
Mr Taylor added: “We are one of the few developers that continue to speculatively build in the region, irrespective of some of the macro-economic challenges that face the industry. We own our land and have a team that can deliver quality buildings for business, creating new and refurbishing stock on existing estates where there is currently facility and infrastructure mitigates risk, while allowing us to assist our current tenant base with their business demand.
"Looking ahead, we are hopeful that this latest investment drive will further build on the £20m we’ve invested over the last two years and act as a catalyst for further economic growth across the region."
