Logistics company Avon Freight Group has announced a £3.5 million expansion in Redditch – a deal brokered by property agents John Truslove.
It has agreed a ten-year lease on the 50,000 sq ft Unit 2, Acanthus Park, the town’s first speculative Grade A industrial unit to be built since the 2008 recession.
Managing director Simon Poole said the move would create ten new jobs – the firm currently employs around 70 staff.
The facility will be used to handle food products and is capable of storing 7,000 pallets.
Mr Poole said: “We feel the expansion is key to our progress as our customers’ needs grow. We have been receiving strong interest from potential new clients wanting to work with us, so we had to take this opportunity.”
Avon Freight Group is retaining its recently refurbished head office at 80,000 sq ft Unit 29 Heming Road, Washford Industrial Estate, but disposing of a smaller 20,000 sq ft unit at Heming Point, Claybrook Drive, currently being marketed by John Truslove, with an asking price of £1.9 million.
“We were originally looking for one large 150,000 sq ft building but in the end decided not to go down that route,” said Mr Poole. “That was due primarily to the length of building time, planning permission issues, and Brexit which raised the risk factor.
“Acanthus Park was under construction, it met our timescale and was only about a mile from our main base. It gave us the room to carry out our expansion plans, so we went for it.”
The £3.5 million investment represents the full rental span of the contract, with fitting out costs on top.
The £10 million turnover firm hopes to move in early next month once construction is complete.
Acanthus Park has been put together by specialist commercial property developer Hamdon Gate. It involved an initial 150,000 sq ft facility subsequently let to logistics firm AMCO Services (International) Ltd with Unit 2 following on. Hamdon Gate was formed in 2008 by director Matthew Small. It has nearly 500,000 sq ft of projects under management with more in the pipeline.
“The company’s future focus will be concentrated towards the Midlands Golden Triangle where funds are available for further acquisitions of prime opportunities,” said Mr Small. “We are very pleased at the way Acanthus Park has been received and let.”
Ian Parker, a director of John Truslove, joint agents on Acanthus Park with Jones Lang LaSalle and Lambert Smith Hampton, said: “We have been saying for a long time that Redditch needs more speculative development because the demand is there.
“And this deal with Avon Freight Group proves it.
“Our message to developers is – you build it and we will let or sell it! We are that confident.”
Avon Freight Group was founded in the late 1970’s, specialising in services to and from Northern and Southern Ireland and taking its name from Stratford-upon-Avon.
Operating from Studley for over 20 years, it was purchased by the present owners Mr Poole and colleague Paul Drew in 1999, and offers storage and distribution globally.
Acanthus Park is in excess of ten acres. Existing occupiers on Ravensbank Business Park, of which Acanthus Park is part, include Intier Automotive, Johnson Controls, Heller UK, Lear Corporation, St Ives, John Lewis and the SP Group.