Forward funding deal signed for two prime logistics assets

Developer Stoford will deliver almost 450,000 sq ft of new logistics accommodation in the West Midlands after completing a forward funding deal with specialist European independent real estate investor Blackbrook.

Two new Grade A warehouse facilities are being speculatively developed as part of the second phase of Redditch Gateway, a multimillion pound logistics and manufacturing scheme near Junction 3 of the M42, south of Birmingham.

Planning approval was recently granted for the new developments which will comprise 160,208 sq ft and 286,328 sq ft respectively and will be built on the southern end of the 78-acre Redditch Gateway site.

Blackbrook will acquire the freehold interest in both new developments upon their completion in Q4 2023.

Stoford joint managing director Dan Gallagher said: “We are very pleased to have reached an agreement with Blackbrook to deliver this best-in-class development, serving the supply constrained south Birmingham market. Redditch Gateway has already provided significant inward investment and many new jobs for the area and this final phase will generate more sustainable and local employment for Redditch.”

Jon Strang, managing director of Blackbrook, said: “Across the UK, there is a shortage of facilities that can provide the high power supply that today’s occupiers are looking for – particularly with the onset of automated warehouses and electric vehicles. To meet this growing demand, and in line with Blackbrook’s strategy to develop future-proof supply chain infrastructure, we are delighted to be working with Stoford to bring to the market two new facilities that will be built to the highest sustainability standards.”

Stoford is development partner for Redditch Gateway, working alongside landowners The Gorcott Trust and Homes England.

Knights and Savills acted on behalf of Stoford, with Blackbrook represented by CBRE and Allen & Overy.