A joint venture (JV) partnership between Chancerygate and Bridges Fund Management has purchased a former automotive component manufacturing site in Erdington, Birmingham, to speculatively build a Grade A urban logistics and industrial space on a 48,562m2 site.
The partners intend to develop c. 27,871m2 of space across 26 leasehold units ranging from 464.5m2 to 5,574m2. Once complete, the development will have a gross development value of c. €99.5m.
The proposed development will be located on Chester Road in Erdington close to both junction 5 and 6 of the M6. The site previously housed a leading supplier to the automotive sector.
The JV purchased the site for an undisclosed amount and marks the partnership’s largest site acquisition to date.
Neighbouring occupiers to the proposed development include Jaguar Land Rover, Volvo and Selco Builders Warehouse, as well as further retail and industrial parks.
Chancerygate development manager, Rob Watts, said: “Acquiring what is regarded as one of the most prominent sites in Birmingham is a huge statement of intent for our partnership with Bridges and underlines our strong belief in the urban logistics sector. There is unsatisfied demand for high-specification units in prime locations within the city. We aim to address this through the regeneration of a redundant building into new Grade A sustainable accommodation which is fit for purpose for a range of prospective occupiers.”
Bridges partner Guy Bowden added: “Across the Bridges platform, we’re developing some of the UK’s most sustainable logistics buildings. We’re delighted to secure this excellent site in Erdington, and we’re confident that given its prime location, there will be strong occupier demand for these high-quality, highly sustainable logistics units.”
Chancerygate and Bridges were advised on the site acquisition by Nick Collins at NRC Associates and Gerald Eve. Knight Frank advised the vendor.
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