Harworth and Lancashire County Pension Fund Complete Second Phase of Speculative Multiply Development at Logistics North
The second phase of Multiply – a new commercial development being delivered through a joint venture between Harworth and the Lancashire County Pension Fund (“LCPF”) at Harworth’s Logistics North site in Bolton – has practically completed, delivering six new warehouse units totalling 270,848 sq ft, of which two are already let on long-term leases.
UW Homes Services Ltda smart meter installation and maintenance business, has agreed to let Unit F2/C, a 30,577 sq. ft unit, on a 10-year lease at a headline rent for the North West of £7.75 per sq. ft. The practical completion of phase two has also triggered the completion of the letting of 20,404 sq. ft of space at Unit F2/E to rijo42, the UK’s leading supplier of commercial coffee machines, coffee beans and coffee ingredients. This lease was agreed on a 15-year term at a rent of £7.25 per sq. ft.
The second phase, which offers a range of 20,404 sq. ft to 30,577 sq. ft units in addition to a larger 149,300 sq. ft unit aimed at manufacturing and logistics businesses, has been delivered in response to the lack of high quality warehouse space in the North West.
B8 Real Estate and Jones Lang LaSalle (JLL) acted as joint agents for Harworth on both transactions.
This follows the completion of the first phase of three units at Multiply ranging from 44,868 sq. ft to 62,952 sq. ft in in December 2017. Hardscape, the UK’s premier landscaping material supplier, became the scheme’s first tenant in April 2018 taking occupation of Unit F2/A, a 44,868 sq. ft unit, on a 15-year lease.
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. To date, over 2.5m sq ft of commercial space has been built with a further 1m sq ft either under construction or committed to be built. More than 5,000 people are employed on the site by occupiers including Amazon, Aldi, Whistl, MBDA, Greene King, Costa and Komatsu. Once complete, the development will deliver over 6,000 jobs and add around £300 million 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. Buckingham Group acted as principal contractor, whilst B8 Real Estate and JLL are retained agents for all of the new commercial units.
Ian Ball, Executive Director of Income Generation at Harworth Group plc, said:
“This marks a further key milestone in the excellent relationship between ourselves, the Lancashire County Pension Fund and Knight Frank Investment Management. I am delighted that we have delivered these units on-time and on-budget to support further jobs to Bolton and the region. New high-quality commercial development remains at an absolute premium across the North of England, with vacancy rates remaining extremely low, and I am confident that we will be able to swiftly secure occupiers for the remaining four new units available.”
John Styles, Partner at Knight Frank Investment Management LLP, added:
“We are pleased that all the new Multiply units have been delivered on-time and have been extremely impressed by how Logistics North has continued to develop into the North West’s premier distribution development in 2018, evidenced by two new lettings already being completed. Our goal is to quickly attract tenants into these units and with significant pent-up demand for new space still existing in the region, we are sure that Multiply can help meet this business need.”
Deputy Leader of Bolton Council, Cllr Ebrahim Adia, said:
“This latest development is another success story for Logistics North and more good news for Bolton’s economy. I am confident these units will bring both new business and new jobs to our town as companies increasingly recognise that Bolton is a great place to invest. I’m also delighted that Bolton is set to contribute £300m Gross Value Added to the Greater Manchester economy each year. Logistics North is the largest industrial site in the North West and I am delighted to see it going from strength to strength.”
Multiply Logistics North, a joint venture between Harworth and the LCPF, was created in May 2017. The agreement involved LCPF funding 80% of the acquisition and the development, with Harworth funding the remaining 20%. The parties took corresponding interests in Multiply Logistics North. Harworth is undertaking development management and asset management roles within the joint venture. The LCPF is advised by Local Pension Partnership and Knight Frank Investment Management.