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Investors started the new year by funding another 352K SF of speculative warehouse development in the North West, amidst predictions of a 2.7% rise in industrial capital values.
The January surge in interest came as Harworth reveald a new record North West industrial rent at Multiply Logistics North, Harworth’s Bolton joint venture with the Lancashire County Pension Fund. It achieved £7.75/SF on a 30K SF unit in November 2018, agreeing a 10-year lease. Harworth said that strong continuing demand was likely to drive further headline rent increases on its remaining unit.
First out of the traps was the Stoford/TPG Real Estate joint venture Icon Industrial, who said that another 138K SF speculative warehouse is to be built at Manchester’s Airport City.
Icon Industrial has submitted a planning application for a fourth development at their growing 45-acre global logistics area next to the World Freight Terminal and part of the Manchester Enterprise Zone.
The 45-acre Icon sites has outline planning consent for 1M SF in units up to 434K SF.
Meanwhile, close to junction 23 of the M6 motorway at Wigan, Stoford teamed up with Oxenwood Real Estate to transform part of the former Carlsberg brewery site at Golborne.
They have submitted two separate full planning applications to Wigan Borough Council for a 73K SF new unit, along with an extension to create a 136K SF unit from existing space.
There is no sign of a reduction in the weight of money finding its way into North West industrial.
According to IPF, the commercial real estate outlook for 2019 is weaker for most markets, but not for industrial. Capital values will rise by 2.7% in the industrial sector, it said, contrasting sharply with a fall across all other sectors.
Cushman & Wakefield speculate that the uptick in enquires seen in the first half of 2018 is yet to filter through to take-up numbers.
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