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The North West 2020 Annual Survey


Multiply Logistics North secures third letting in six weeks as market remains strong


A warm welcome in Manchester


Chris Timms, Head of Sales for the North, Octopus Real Estate


Having worked closely with our loyal broker network in the North for several years, and


Multiply Logistics North secures third letting in six weeks as market remains strong


Multiply Logistics North (“Multiply”), the new commercial development at Harworth’s Logistics North site in Bolton being delivered through a joint venture between Harworth and the Lancashire County Pension Fund (“LCPF”), c/o Knight Frank Investment Management (KFIM), has signed a third new tenant for its commercial units in the past six weeks, reflecting continued strong demand for industrial units in sought after locations in the North West.


The joint venture has completed the letting of Unit F2/J, a unit of 24,636 sq. ft, to the Incontinence Shop, the largest stockist of incontinence products in the North West. It has taken a ten-year letting at a rent of £7.50 per square foot and will be using the unit as a depot for distribution. This deal follows recently announced lettings with Solus and an unnamed pharmaceutical supplier on ten-year leases for similar size units and leaves just two of Multiply’s nine built units, one of 55,556 sq. ft and the other of 149,198 sq. ft, remaining available for long-term letting.


The progress of Multiply Logistics North, a joint venture between Harworth and the LCPF c/o KFIM, has been impressive given it was only created in May 2017. Since then it has received consent for and built 434,000 sq. ft of energy efficient units, letting over nearly 230,000 sq. ft of space to seven tenants including rijo42, Hardscape, the PJH Group and UW Homes Services, all on long- term rents with the majority above £7.50psf. Demand for its two remaining units remain strong and are anticipated to be let over forthcoming months.


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The joint venture involves LCPF funding 80% of the acquisition and the development, with Harworth funding the remaining 20%. The parties took corresponding interests in Multiply Logistics North, with Harworth undertaking development management and asset management roles on behalf the joint venture. B8 Real Estate, Jones Lang LaSalle (JLL) and Knight Frank are acting as joint agents for the scheme.


Steven Knowles, Director for the North West at Harworth Group plc, said:


“This is what Harworth and its partners do best: delivering the new jobs and investment that we forecast when we design our developments. We have a growing pipeline of sites in the North West, reflecting its importance to the business, and I look forward to delivering further new jobs and homes as part of its regeneration.”


Harworth received outline planning consent for Logistics North, the largest live commercial development in the North West of England, at the end of December 2013. Nearly 6,000 people are now employed on the site by occupiers including Amazon, Aldi, Whistl, MBDA, Greene King, Costa and Komatsu. Once complete, the development will deliver over 7,000 jobs and add around £300m in Gross Value Added to the Greater Manchester economy per annum.


The completed Multiply units have been built to a specification designed to offer high quality and flexible business space to occupiers. This includes a BREEAM rating of ‘very good’, office space comprising 5-10% of the overall internal area, secure service yards with 38-50 metre depth and bespoke fit out solutions being available.


priding ourselves on providing a specialist service, we have listened to what they want from a lender. So, coupled with the opportunities we were seeing in the Northern property market, we decided six months ago to open an office in Manchester to support our network in the North, and we received a warm welcome! Since opening our northern office, we have received a fantastic reception from our broker network and borrowers. From the celebration of completing our first deal, fully serviced by the Manchester office, to seeing our enquiries increase, we continue to establish ourselves. We have seen more through the door, converted more and completed more month on month, so we’re massively grateful for the support received so far.


While the North and South property


deal profiles mimic each other regarding needs, including flexibility and speed, we have acknowledged that qualifying criteria shouldn’t necessarily be a blanket level across the country, as property prices in the North are historically, and proportionately lower. We have tailored our lending criteria in the North and are now considering loans from £50,000. We also thought it was extremely important to hire local talent with experience in the Northern market and region, so we did! We only see the Northern market continuing to go from strength to strength, and we plan to move with it. Both the commercial and residential property markets are moving, and opportunities continue to arise making investment in the North an attractive choice. As our network grows, and our team with it, opportunities to be adaptable like this will keep coming and they will be vital to the future success of the team.


The people are what makes our business so exciting. I’m lucky to work with a great team at Octopus Real Estate and the broker network is full of great characters who make sure that no two days are the same. Broker relationships are key to what we do, so the office will always have an open-door policy for our broker community. Give us a call and come to see us!


COMMERCIAL PROPERTY MONTHLY 2020


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