Tungsten Properties, one of the UK’s leading mid-box industrial and warehouse developers, funded by British Airways Pension Trustees, has acquired a prominent distribution development site at Lyncastle Road, Appleton Thorn Trading Estate in Warrington from Travis Perkins plc for £7.5 million.
The Lyncastle Road site totals 11.03 acres (4.46 hectares) and following Travis Perkins’ relocation earlier this year, to its new, larger facility at Omega Warrington Distribution Centre, houses an outdated warehouse.
The site is an allocated employment area and preferred distribution location within the local plan. Pegasus Group is to prepare the planning application. Subject to planning, Tungsten Properties will redevelop the site to build a new commercial warehouse totalling 243,000 sq ft (22,575 sq m) including office space, 18 dock-levellers and a 229-car park with new access, which will house more than 200 jobs.
Lyncastle Road is within one mile of Junction 20 of the M6 motorway and Junction 9 of the M56 motorway. Warrington town centre is within four miles to the north. Warrington lies midway between Manchester and Liverpool and benefits from easy access to Manchester Airport (14 miles) and Liverpool John Lennon Airport (21 miles).
Tungsten Park Warrington occupies a high-profile distribution location within the Appleton Thorn Trading Estate and other businesses include Eddie Stobart, DPD, Stretton Green Distribution Centre and Shred-it.
Subject to planning, demolition works will start later this year with the unit available from late summer 2021. Colliers and Moriarty & Co have been appointed letting agents.
This purchase is Tungsten Properties’ third acquisition during lockdown following recent announcements of its Yorkshire acquisitions of Super B in Bradford, a new 230,000 sq ft warehouse development, and the former B&Q in Sheffield for a new 170,000 sq ft warehouse along with roadside uses.
Tungsten Properties’ other projects under construction include Tungsten Park Witney in Oxfordshire, a 25 acre development site which will see 490,000 sq ft business park, Tungsten Park Stone in Staffordshire which totals 86,000 sq ft across four buildings, Tungsten Park Hinckley with 63,500 sq ft in two mid-box units, Tungsten Park Bardon in Leicestershire, an 11.25 acre site with four industrial units totalling 200,550 sq ft, and Union Park in Leighton Buzzard, an eight unit, 163,940 sq ft warehouse scheme.
Tungsten Properties’ total warehouse space currently under construction totals 600,000 sq ft, out of a committed pipeline of 1.65 million sq ft with a gross development value of £186 million.
Ian Dunckley, development director, Tungsten Properties commented: “Our latest acquisition in Warrington, which is our second funding partnership with British Airways Pensions Trustees Ltd, responds to the lack of new logistics stock in the North West and demand from businesses for new, state of the art expansion space. Savills recently reported that the North West has a logistics’ market vacancy rate of just 5.48%, the lowest level ever recorded and with the development pipeline in the area below 1 million sq ft, they calculated that the region has just 1.07 years’ supply. Therefore, our investment aims to meet market demand to create workspace, jobs and solutions for business and ultimately consumers.”
Nathan Khanverdi, associate director at Colliers International, who acted on behalf of Tungsten Properties said: “We are delighted to have acted on behalf of Tungsten acquiring a prime logistics site which is located on arterial routes from the South of England to Merseyside, Greater Manchester and North Wales. Subject to planning, this speculative 243,000 sq ft building will be one of the only new developments of this size to be delivered in 2021.”
Colliers acted on behalf of Tungsten Properties and British Airways Pension Trustees Ltd; Avison Young and B8 acted on behalf of Travis Perkins plc.