Tungsten Properties, a mid-box industrial and warehouse developer, has gained funding from British Airways Pension Trustees Limited and has acquired 25 acres of land at Severn Road, Avonmouth from Delta Property Holdings for £11 million.
The scheme is based across two plots of the North and South of Severn Road and will aim to accommodate a 457,000 sq ft (42,456 sq m) logistics scheme over six buildings, ranging from 16,00 sq dt to 240,00 sq ft. It’s estimated that the project will help with the creation of over 300 new jobs.
The site also has the benefit of an existing outline for planning permission, with Tungsten Properties committing to deliver phase one, which will consist of two industrial units of 80,000 sq ft 240,000 sq ft. Construction is set to start in September 2021 and the two building should reach their completion by Summer 2022.
Phase two will consist of four smaller buildings which will range in size from 20,000 sq ft up to 62.000 sq ft to total 125,000 sq ft.
Avonmouth is a well-known and well-established South-West distribution location, thanks in part to its thriving port as well as great links to the M49 and M5. Occupiers include Amazon, Lidl, Tesco, DHL, Next, The Range, Coop, Acolade Wines and Asda.
It is also the fourth deal where British Airways Pension Trustees has funded Tungsten Properties with the three other projects being: Super W in Warrington, Super B in Bradford and Calder Park in Wakefield.
Ian Dunckley, Development Director, Tungsten Properties, said: “With Avonmouth being such a well-connected place with a strong workforce in nearby Bristol and South Wales, it is ideal for logistic occupiers. With retail habits changing and consumers purchasing more online, the warehouse distribution market is expanding and we aim to capitalise on this growth. To meet the demand, we will focus on the two larger units. We have built up a strong relationship with British Airways Pension Trustees and look forward to delivering this next significant project with their support to deliver high-quality logistics space and jobs.”
Russell Crofts, Partner, Industrial and Development, Knight Frank, who acted on behalf of Tungsten Properties, added: “This purchase reflects another major vote of confidence in Bristol as the prime location for logistics throughout the region. Tungsten has a proven track record of delivering high-quality developments, and the proposed scheme will reflect this reputation. Over the last 12 months, demand has been extremely high throughout the region, and we expect the new purpose-built distribution units to immediately meet this lack of supply in a highly active marketplace.”
Knight Frank has been appointed letting agent.
If you would like to read more stories like this, then please click here