A joint venture (JV) between developer Chancerygate and global real estate firm Hines has started construction work on its 92,813 sq ft Aston Gateway industrial scheme in Aston, Birmingham.
The development, which is located on Aston Hall Road in Aston’s Advanced Manufacturing Hub, comprises 18 industrial and warehousing units ranging in size from 3,370 sq ft to 39,022 sq ft. Units will be available on a leasehold basis.
The scheme has a projected gross development value of £16m and will be built by Bailey Construction after the contractor won a competitive tender for the construction contract worth £7.2m. Practical completion is expected in March 2022.
Located three miles from the city centre, Aston Gateway is being built adjacent to the M6 providing quick access in and out of Birmingham. Neighbouring occupiers include Guhring, Hydraforce, Salts Healthcare and Y International.
Chancerygate development director and head of the company’s Birmingham office, Mark Garrity, said: “Aston is an area that is going through significant regeneration and we’re pleased to be starting on site on an excellent scheme which will be an important part of that process.
“Currently there is a lack of multi-unit industrial schemes available in the area to support the needs of businesses, so we’re pleased that construction has begun at Aston Gateway to provide much-needed units. We’ve had a great deal of early interest already, which demonstrates the demand from occupiers for high-quality industrial and warehousing units close to Birmingham city centre.”
The JV between Chancerygate and Hines acquired the 3.75-acre site from Birmingham City Council and Homes England in December 2020 for £3.35m.
The Advanced Manufacturing Hub is a joint venture between Birmingham City Council and Homes England and is a 49-acre site designated for regional investment and can accommodate buildings ranging from 15,000 sq ft to 155,000 sq ft. The venture is aimed at the advanced manufacturing sector.
Leader of Birmingham City Council, Cllr Ian Ward said: “The Aston Gateway industrial scheme is a huge vote of confidence in Birmingham’s post-Covid recovery and will create high quality jobs and opportunities at a vital time.
“The Advanced Manufacturing Hub is already a success story and now with Chancerygate and Hines, we’re writing the next important chapter.”
Founded in 1995, Chancerygate is the UK’s largest multi-unit industrial developer and asset manager and the only one operating nationwide, with offices in London, Birmingham, Milton Keynes and Warrington.
The company currently has up to three million sq. ft of industrial space under construction or ready for development across 23 sites ranging from Bournemouth to Edinburgh.
Homes England head of acquisition, Stuart Buckley, said: “This scheme highlights our commitment to use our land and investment to help stimulate local economic growth by delivering new commercial space and ultimately jobs. It is the latest development to start on site at the Advanced Manufacturing Hub and will provide a range of small to medium sized units for starts ups and business to expand.
“This builds on the success of the considerable investment by large, advanced manufacturing companies from across the globe who have located onto the site following the land assembly and enabling works undertaken by Homes England and Birmingham City Council.”
Bailey Construction director, Scott Bailey, said: “We are extremely pleased to have been appointed as the principal contractor on this prestigious scheme to deliver the design and construction of over 92,000 sq ft of high-quality industrial stock within Aston, Birmingham. Again, we look forward to delivering this scheme and working with Chancerygate as a repeat client.”
Joint agents on the scheme are Colliers and Savills.
