M&G to finance new Trafford Park warehouse
GLOBAL company M&G Real Estate is to fund the construction of a 175,000 sq ft warehouse at Trafford Park in Manchester.
In a joint venture with Marshall CDP, it will build the unit at Union Square.
The purchase was made on behalf of the M&G Property Portfolio, managed by Fiona Rowley and deputy fund manager Justin Upton.
Marshall CDP will act as development manager of the scheme. Trafford Park, on the banks of the Manchester Ship Canal, is one of Europe’s largest estates as well as the most established industrial and distribution location in the North West of England.
The park has direct access to the M60, M62 and M6 motorways and hosts the largest inland freight terminal in the North West.
“We are seeing a real lack of supply in prime logistics assets in core locations throughout the North West,” said Rowley.
“In Trafford Park, this is particularly true for units of 150,000 – 200,000 as a result of restricted land supply.
“However, tenant demand continues to strengthen and consequently the potential for rental growth from is anticipated to grow too.
“Our speculative forward commitment will capitalise on the need to fulfil this demand and bring a new build distribution warehouse to Trafford Park, built to market specification.
“Investor appetite remains strong for logistics assets. This is set to continue throughout 2015 as the industry plays an integral role in supporting the unprecedented growth currently being experienced by e-commerce.
“It shows no sign of let-up and so it is expected that investors will continue to move up the risk curve, ensuring prime logistics assets in core locations continue to be a priority for savvy investors.”
Simon Marshall, of West Yorkshire-based Marshall CDP, added: “We are pleased to have agreed this deal. This sought after site is of strategic importance to the North West and with the growing strength in the occupational market, it highlights the renewed confidence in the investment market.”
Joiner Cummings acted for M&G Real Estate and Marshall CDP Ltd were represented by Manchester-based Davies Harrison. Davies Harrison and B8 Real Estate in Warrington are the letting agents on the scheme.
