Housing group agrees lease deal on new manufacturing facility
West Midlands housing group, Accord, has signed a lease deal on a 55,000 sq ft industrial building which it intends to use as a new manufacturing facility.
The West Bromwich-based group is one of the largest housing and social care organisations in the Midlands. It is investing more than £1m in the new venture.
For the last seven years, the group has been manufacturing modular homes at its LoCal facility in Walsall.
However, demand for the offsite homes is growing rapidly and the group needs additional capacity to meet requirements.
It has now agreed terms on the Airfield 55 unit at Airfield Drive, Aldridge, which has been developed on a speculative basis by Trebor Developments and Kay Properties (Midlands).
The building is currently under construction and will be completed in summer 2018. Accord has agreed a 15-year lease with a 10-year break option.
The decision means Accord will switch its manufacturing operation from its existing factory on the Beechdale Estate to the new site once handover and fit-out is complete.
Alan Yates, Executive Commercial Director at Accord, said: “Building on our successful experience of offsite manufacturing, Accord’s vision is to increase production of our timber framed homes through our very successful LoCaL Homes business.
“We have ambitious plans for our new factory, which will enable us to increase annual production to over 1,000 homes per year.
“We are experiencing real growth in the business by working in partnership with other Housing Associations and Local Authorities across the country. Accord is investing over £1m in developing the new factory including high value manufacturing equipment, and we will be able to both meet future orders and create more jobs for local people too.”
Chris Handy, Chief Executive of Accord, said the larger factory would enable the manufacture of a new integrated kitchen and bathroom unit, called an ‘H-pod’.
“We will also be able to further develop our spoke factory concept, setting up other factories in partnership with others by offering a turnkey solution,” he said.
The group’s investment has been enhanced by grant funding from the Black Country LEP and the Homes and Community Agency (now Homes England), while its job creation potential is supported by Walsall Council.
Bob Tattrie, Managing Partner, on behalf of the Trebor Developments/Kay Properties JV, said: “We are delighted to have signed Contracts with Accord for their new manufacturing and distribution premises.
“We always strongly believed in the location and our decision to build speculatively has been rewarded with an early transaction to let the building only a few weeks after starting construction, with strong interest being shown by several occupiers. We look forward to welcoming Accord to the new building in the summer.”
Airfield 55 was marketed by joint agents, Bulleys and Burley Browne.
Accord was represented by Lambert Smith Hampton.
Pictured from left outside Airfield 55 are, from left: Bob Tattrie, Managing Partner of Trebor Developments; David Kay, Director of Kay Properties (Midlands); Alan Yates, Executive Commercial Director of Accord; Cllr Lee Jeavons, Deputy Leader of Walsall Council.
Airfield 55
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