| the north east
IN MY VIEW... T
he industrial market in the North East continues to be a tale of limited supply and strong demand. Nissan’s
Nick Atkinson
announcement last autumn that it will build the new Qashqai and X-Trail at its Sunderland plant has only helped to further strengthen the market. So at a time
when there is
understandable caution regarding the effects of Brexit, it is significant that we have a genuinely ‘strong and stable’ automotive sector in the region. Not only does it represent a shot in the arm for North East manufacturing, but as a direct result - our industrial property sector too. At HTA we are seeing the Nissan supply
chain continue to grow into what is now an established network of North East manufacturing and logistics businesses, many of whom are tied to time critical supply contracts. The lack of immediate availability in the South Tyneside and Sunderland localities is driving the way for speculative development across Tyneside, and already we are seeing that developers
Nick Atkinson, director at Newcastle-based HTA Real Estate, discusses his views on the North East industrial market
are being rewarded for their speculation. UK Land Estates is in the process of
delivering large sheds across its land holdings at Team Valley and Tyne Tunnel Trading Estate and already have two of these under offer. Given the current market dynamics I
strongly believe that where developers can speculatively build a large shed of a good specification and in a strong location, a letting will follow very soon. It is questionable whether a contract
with Nissan can enable a firm to enter into a 10 to 15 year lease for a brand new shed. However, the strength of the automotive sector is eating away at the availability of existing stock, which means that in many cases, the only choice available to other businesses is to take a brand new unit from a developer. For Tier 1 suppliers, the location and
bespoke nature of their requirements will lead to further design and build projects taking place in and around Washington and Sunderland. Another issue is the need for grant
funding and we have seen that the North East LEP have supported developers who provide new build development to accommodate manufacturing businesses. This is something which will need to continue to secure future speculative
RAFT OF NEW LETTINGS AT FOLLINGSBY PARK
sign up to newly refurbished units at LGIM Real Assets’ (L&G) Follingsby Park in Gateshead. Newcastle-based HTA Real Estate
T
secured the lettings to Argus Fluid Handling Systems, Max Energy & Comau for L&G, on behalf of its UK Property Fund. Max Energy, which was established in
2015, has chosen Follingsby Park as its new North East base as part of its expansion programme. This will be the firm’s sixth branch, adding to its other locations in Ashford, Bridgwater, Leicester, Leeds and Warrington. The firm, which offers insulation
expertise across a range of sectors including new build housing, domestic construction, social housing and landlords has signed up to a 5 year lease on a 5,574 sq.ft unit. Argus Fluid Handling System, which is
part of Hiflex Europe, has signed up to a six year lease on a 10,000 sq.ft unit. The firm provides high quality, cost effective design and production of hose and tube assemblies and the new unit will provide additional warehousing space for
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wo automotive manufacturers and an insulation specialist are the latest to
expansion. A second automotive manufacturer
Comau recently announced it has signed a 10 year lease on a 13,183 sq.ft unit. The company, which counts Nissan as one of its major clients, is relocating from Spire Road in Washington in a move that will triple its floor space and create up to 60 new jobs. Matt Jarvis, fund manager of the
Legal & General UK Property Fund, said: “Following the successful completion of a number of asset management initiatives at Follingsby Park, we have seen significant occupier interest in the estate, resulting in a number of lettings with more in the pipeline.” Nick Atkinson, director at HTA Real
Estate added: “These latest lettings have been well timed to tie in with the completion of the comprehensive refurbishments undertaken on all three units.” Follingsby Park comprises over 1.1m
sq.ft of industrial floor space and has attracted a host of new occupiers over the past 18 months including Panther Logistics, Ashstead Plant Hire, DFS and Shred-It. Cushman & Wakefield are joint letting agents with HTA Real Estate.
development. The North East is well served with
development opportunities to accommodate occupier demand but only a handful of sites have the connectivity and ability to turnaround development in a timely manner to make them viable propositions. One location we expect to thrive is Jade
Business Park, County Durham which is located immediately adjacent to the A19 and can offer units of up to 1m sq.ft. The 21-hectare site has outline permission for over 700,000 sq.ft of B1, B2, B8 development, so given its location 10 miles due south of Nissan it represents a key opportunity for the automotive sector. Another is Turbine Business Park, which
is located directly south of Nissan and is already home to Vantec, who provide warehousing of car parts to Nissan. With fully serviced land ready for development, the developers, Barmston can accommodate a bespoke unit of up to 70,000 sq.ft which can be delivered within a short time frame. For more
information visit:
http://www.jadepark.co.uk/ http://www.turbinebusinesspark.co.uk/
GATESHEAD UNIT N
ewcastle-based HTA Real Estate has concluded the sale of a 28,000 sq.ft
industrial property to a growing packaging company. iPac Packaging Innovations has
acquired the manufacturing premises at Albany Road, close to Gateshead town centre, with plans to create a raft of new jobs over the next six months. iPac provides innovative packaging
solutions to food processing companies and retailers through various supply chain partnerships. The opening of the new Gateshead manufacturing plant will enable iPac to bring packaging production in- house and the firm anticipates the creation of 23 jobs by 2018. Jonny Catto, finance director at iPac
said: “The acquisition of our new Albany Road site is a major step forward for iPac. The premises are currently undergoing an extensive refurbishment programme in order to bring it to the highest level of food packaging hygiene and quality standards. We have already completed phase 1 of
the project, which means we are now "production ready", phase 2 will be completed by October 2017 allowing capacity expansion.
COMMERCIAL PROPERTY MONTHLY 2017
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