Yorkshire Counties In my view: strong foundations for industrial’s new wave
following the peak demand in the region dur- ing the Covid pandemic.
Robert Whatmuff, Director of Industrial & Logistics and Head of the Colliers’ office in Leeds.
Yorkshire is experiencing a transformative wave of industrial regeneration, building on the accelerated take up of quality space through the pandemic with the overnight shake up and explosion in ecommerce. In addition, wider global macroeconomic drivers have pushed for supply chain onshoring, we have seen a resurgence of UK manufactur- ing, as well as burgeoning interest in energy infrastructure, all of which is complimented by a robust, skilled labour supply within the region.
Last year, take-up activity for units exceeding 100,000 sq ft reached 1.8 million sq ft across 11 deals. Although this was an 11% year- on-year decrease in take-up of space, it is unsurprising to see some occupier slowdown
As a result, supply of warehouse space has remained elevated over the past two years, peaking at 6.9 million sq ft in December 2024, with 4.2 million sq ft of that Grade A quality. This stems from 5.4 million sq ft of specula- tive unit deliveries during the last two years, in response to a critical shortage within the region which at one point had no Grade A supply at all, along with some secondary and tertiary space returning to the mar- ket. However the regional five-year average annual take up for units over 100,000 sq ft stands at 4.2m sq ft, so the reality is current supply of Grade A accommodation is below the 12 months average take up. This year has already started positively, with take up to date at 837,000 sq ft and a further 611,000 sq ft under offer.
Average rents have also continued to increase by 5.2% year-on-year in 2024, with core submarkets now surpassing £8.25 per sq ft in areas with tight availability, as occupi- ers compete for space that is still in relative short supply.
Regeneration of industrial
The resurgence of manufacturing and a highly skilled labour supply has contributed
to a wave of occupiers choosing to make the region their home, including tool man- ufacturer Dormole Limited pre-let 137,000 sq ft and BAE leasing 96,805 sq ft both at Bessemer Park in Sheffield. While Sheffield Forgemasters’ confirmed their commitment to new facility near Meadowhall.
There’s also a new wave of industrial and busi- ness parks being created around Yorkshire Energy Park, as part of Humber Freeport, alongside the excellent opportunities at Goole Freeport.
The recent announcement of the re-opening of Doncaster Airport for freight transport and the significant neighbouring industrial and advanced manufacturing development opportunities at iPort Doncaster with its expanding rail freight terminal, will only add further to the region’s credentials as one of the UK’s hotspots for overseas imports as well.
Yorkshire’s industrial market is at a pivotal point, with significant potential for growth and regeneration.
By leveraging the region’s strengths in ESG-compliant space, energy infrastruc- ture, and a strong labour supply, Yorkshire can continue to attract investment and drive growth.
Hilco Real Estate Finance provides £14.2m development exit loan
support was carried out for HREF by Clarion Solicitors led by Ben Slack and Marie Pugh.
Leeds Skyline
Specialist bridge lender Hilco Real Estate Finance (HREF) has provided a £14.2m devel- opment exit loan to Torsion Group, a leading Leeds-based real estate investor & developer.
The 12-month loan at 74% net loan to value will provide the Group’s development arm, Torsion Developments, with additional time to sell the remaining units in their 364-unit Pheonix residential scheme in Leeds.
Charlie Job, associate at HREF, said: “This development exit loan to Torsion is a perfect example of transitional capital, and demon- strates our ability to lend swiftly without any constraints on funding on any deal that makes sense. This transaction also shows our appetite for development exit loans and the deliverability of our funding, and we look
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forward to transacting on further develop- ments with Torsion Group.”
HREF has started 2025 with a number of sig- nificant bridging transactions, and anticipates closing a further three deals totalling over £30m in the coming weeks.
The transaction was introduced by Nick Swerner of GLPG, who commented: “Working with our client and Hilco on this deal was highly enjoyable, as we had two motivated partners to conclude the transaction, with Hilco proving to be a reliable capital partner, able to deliver swiftly on their own decision to lend without any third party involvement.
Valuations were undertaken by Gerald Eve LLP, and legal due diligence and transactional
COMMERCIAL PROPERTY MONTHLY 2025
HREF was launched in 2023 and provides tai- lored, flexible property finance nationwide across various real estate sectors and capital structures, offering short term bridging loans for growth, acquisition opportunities, devel- opment exits and refinancing exits with loan sizes ranging from £3m to over £100m.
The lender has grown quickly to become one the UK’s most active specialist bridge lend- ers, and continues to target growth, intend- ing to expand its loan book significantly in 2025 across all real estate sectors in the UK and Ireland.
HREF has offices throughout the UK and com- prises a team of highly experienced finance professionals. It is a fully integrated subsidi- ary of Hilco Global (Hilco), the multi-national financial services group with more than $5bn of assets under management.
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