The North East


Connecting Supply With Demand At Integra 61, Durham


Property Group Completes Major Durham Acquisition


A North East property investment group has completed the multi-million-pound acquisition of a major County Durham industrial site.


Ward Group Investments, the eponymous investment


group headed up by


entrepreneur Andrew Ward, has purchased four buildings on Bowburn North Industrial Estate which were marketed at £4,500,000.


Comprising a total of 200,343 sq ft of


workspace, the four units are adjacent to the A1(M) and sit just north of the new Integra 61 development, home to Amazon’s Durham fulfilment centre.


Three of the four buildings are already let, with PC Henderson Limited, Katem Logistics and Personal Hygiene Services Ltd all having operated from the estate for over five years.


Avison Young, joint agents on the


largest speculative scheme in the North East, Connect at Integra 61, report that the North East Industrial and Logistics Market is performing well.


Danny Cramman, region Director, explains;


“Recent research by CoStar shows that the


is currently experiencing


extremely low vacancy rates in the sector. Demand has outweighed supply in all but one of the last seven years with vacancies down as low as 2% in some areas, the lowest for 15 years. Whilst the amount of speculative space being delivered in 2023 will go some way to easing this pressure, it will not cater fully for the level of demand for new build high quality space.


“Take up continues to be spread across a number of users. Logistics, manufacturing and automotive tenants remain very active. Envision have now completed their EV battery facility in Washington delivering the region’s first Gigafactory. This is not only an important step for the region’s manufacturing sector, creating high quality jobs, it will also help generate further enquiries for space from their suppliers. Onshoring of supply chains following Brexit is likely to see demand for space increase.


“One of the effects of this high demand and limited supply has been strong rental growth. Record rents are being achieved across all size ranges with new build and modern stock performing particularly well. This makes the sector attractive to the investor market. It is also worth noting that whilst rents in the sector are rising, the North East still represents extremely


good value when compared to for rental


occupiers levels


in


other areas. According to the CoStar research, the region is more affordable for occupiers than three-quarters of the UK’s 55 industrial markets.


“Much of the region’s stock, whilst still functional is aging in nature. Nearly three quarters of the industrial and warehouse space, some 110 million sq ft, was built before the turn of the century. With many occupiers increasingly focused on operating in buildings which meet their Environmental and Social Governance aims, the delivery of high quality new build speculative space is increasingly important.


“This is where schemes such as Connect and the wider Integra 61 offering being delivered by Citrus really come into play. Five units completed in September 2023 creating 640,000 sq ft of modern high bay industrial/warehouse space. The units are now ready for occupation. Sizes range from 43,000 sq ft up to the largest speculative unit constructed in the region of 298,000 sq ft. The units have been delivered to a high standard, achieving A standard EPC ratings which will future proof them against forthcoming legislation which will tighten the requirements buildings need to meet for commercial occupiers.


“We are increasingly seeing occupiers look to drive value through energy efficiency which these buildings are well placed to cater for.”


Agents on Integra 61 are Avison


Young and Colliers. www.integra61. co.uk Agents on Connect are Avison Young, CBRE and Colliers. https:// connectintegra61.co.uk/


The fourth unit, Unit 2, stands vacant, however the team at Ward Group Investments are confident that – once refurbished – it will offer an ‘appealing proposition to businesses seeking to capitalise on the area’s growing reputation for last mile logistics’.


“We are delighted to have closed this deal,” Andrew said.


“Over the past two years,


we’ve grown our portfolio significantly with a number of strategic acquisitions across the UK and the UAE and this is yet another high-quality development to add to our ever- growing list.


“The North East and particularly County Durham are perfectly placed for businesses seeking to capitalise on the growing demand for last mile logistics and investment opportunities don’t get much better than this. It’s perfectly placed adjacent to the A1, provides access to a skilled workforce and offers some of the most competitive business rates in the UK, it’s absolutely perfect.”


Andrew set up Ward Group Investments in 2021 following the sale of his previous business, Workwear Express - which he set up with a sewing machine in the back of his van - to global giant Bunzl.


The firm invests in a diverse range of properties including industrial, retail, office, leisure and student accommodation across the North East and overseas.


Leading property agency Bradley Hall advised Ward Group Investments on the purchase of the site and helped get the deal over the line.


Nick Bramwell, associate in the industrial and logistics


investment team at Savills


Newcastle, acted on behalf of the seller during the acquisition by Ward Group Investments.


COMMERCIAL PROPERTY MONTHLY 2023


17


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