Regional Focus Logistics Property NORTH WEST & NORTH WALES Northern light:
Lambert Smith Hampton’s John Sullivan
Manchester man: DTZ’s Tony O’Keefe
“Whilst the rest of the UK logistics property scene flatlines, the North West roars ahead”
most of this space is already committed to end users reflecting the absence of grade A space.” Julien Kenny-Levick, director, logistics and industrial at the North West office of Colliers International, warns that tenants may have to get used to a weaker negotiating position. “Now that the last of the ‘Big Sheds’ speculatively constructed pre-recession have been let, the North West industrial market finds itself in the unenviable position of not being able to offer end users existing large
Motor parts
The motor parts distribution business can expect a boost, thanks to Janguar Land Rover’s decision to sign up for a 405,000 sq ft distribution complex at Hooton, Ellesmere Port.
The JLR car parts site at Hooton Park, close to junctions 6 and 7 of the M53 motorway, will be managed by DHL and support the car plant at Halewood. Landlords are Highcross.
The news followed General Motors’ decision to invest in the Vauxhall plant, also at Ellesmere Port. The new Astra will be built there.
Following the two announcements, Cheshire West and Chester Council say they are already looking at occupier requirements totalling 2m sq ft, and expect more to come from the automotive parts sector.
Says Tony O’Keefe, industrial agency director with DTZ in Manchester: “The automotive sector is expected to influence take-up figures in the second and third quarters. A number of smaller supplier requirements are also in the market as a direct result of increased production and the success of JLR’s Evoque car.”
Per aspera ad astra: Ellesmere Port will be boosted by Vauxhall’s decision
warehouse property solutions. Agents have been warning this would happen and their fears have been realised,” he says. “Occupier demand definitely exists with the likes of Brake Brothers, Hermes and Rehau
not transfer to new build. Gone are the days of short-term leases with enormous incentives. Occupiers need to understand that to get a development underway they need to be con- scious of lenders’ funding requirements, which
www.shdlogistics.com
all in the market for large buildings with current require- ments that cannot be
satisfied by existing stock. These and other occupiers must therefore consider the ‘build- to-suit’ route of acquiring a property with consequent timescale and cost implications. “The next hurdle that occupiers need to overcome is the fact that deals on offer on existing buildings over the past four years do
means 15-year leases with fixed rental uplifts.” The Jaguar Land Rover signing at Ellesmere
Port (see panel) took one of the last few large speculatively-built sheds off the market, says Mike Rooney, logistics property part- ner at WHR, a Manchester consultancy. He says: “There is now no stock to sat- isfy the growing demand for larger industrial units. This situation will see the creation of a new generation of ‘super sheds’ with design and build back in trend.” n
North wales
A 2.5m sq ft shed development at Deeside will boost the North Wales warehouse scene.
Developer Praxis
has won planning consent for the redevelopment of the 250-acre RAF Sealand site. The base will also see residential development and a small retail scheme.
Praxis has been working on plans since it bought the site from the government’s Defence Estates agency in 2010. Work on site is expected to begin this summer.
Whilst the Sealand scheme goes ahead, it is still not clear what the Welsh
government’s new enterprise zones in Deeside and Anglesey can deliver for the logistics sector. The Deeside zone is officially intended to appeal to advanced manufacturing, concentrate on wind farms.
whilst Angelsey will Storage Handling Distribution July 2012 41
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