Urban Logistics snaps up two development sites in £23m forward funding deal

Blenheim Park

Urban Logisitcs REIT has snapped up two development sites in Leicester and Nottingham in a deal worth £23m.

The company has exchanged contracts with Wilson Bowden Developments for Blenheim Park in Nottingham and Optimus Point in Leicester.

The 8.1-acre site at Blenheim Park, Nottingham, will comprise four units with a total gross internal floor area of 166,330 sq ft.

The 2.5-acre site at Optimus Point, Leicester, will comprise one unit with a gross internal floor area of 43,850 sq ft.

Richard Moffitt, chief executive, said: “Covid-19 has highlighted the importance of warehousing and logistics real estate, especially the scarce, high-quality, single-occupier regional and last mile urban properties on which the company focuses.

“The development programme announced today, which we have sourced off market, will add further high-quality new assets to the company’s portfolio at a time when smaller urban logistics warehouses are in short supply. Given the strength of demand for space from occupiers seeking representation in the East Midlands market, we expect to achieve favourable lease terms on each of the assets with high quality tenant counterparties.”

Construction is expected to start in September, with completion expected between September 2022 and February 2023.