The second phase of Apollo Park, one of the very few speculative industrial developments in recent years in the South West, is under construction and has already been sold off-plan.
Chancerygate, the specialist industrial and logistics developer, represented by the Industrial and Logistics team in the Bristol office of Colliers International, jointly with JLL, has sold a 60,000 sq ft unit to timber import and distribution company James Latham.
Alastair King of developers Chancerygate said “We are pleased to welcome James Latham to Apollo Park.
“Following a complex planning process we are delighted to be able to satisfy James Latham’s freehold requirement here in Yate, retaining the company’s presence in the town where they have been based for many years.
“In committing to this modern distribution facility James Latham has been able to retain important jobs in the town and with the predicted growth in the business this new facility will allow new jobs for local people to be created”.
Tim Davies, head of the Industrial & Logistics team in the Bristol office of Colliers International, said the success of Apollo Park in attracting owners and tenants confirmed the decision of Chancerygate to “bite the bullet” and build speculatively on the established Great Western Industrial Estate in Yate, north Bristol.
“The Apollo Park site had stood idle for the best part of 10 years, but encouraged by local activity and their experience in other markets outside of the South West, Chancerygate pushed the button,” he said.
“They have been rewarded by disposing of 80% of the buildings before practical completion with long term lettings of 39,000 sq ft to Saddleback and the 60,000 sq ft sale to James Latham, leaving 40,000 sq ft of speculatively built units which are available for immediate occupation and ranging in size from 3,200 sq ft up to 18,000 sq ft. These units are available to let or purchase.”
He added that supply levels of industrial stock in the South West were now at an all-time low.
“There is strong evidence showing evidence of rental growth and reduced landlord incentives throughout the Bristol area. This in part reflects occupier demand remaining pretty consistent but also a continuing lack of new industrial development,” he said.
“Although other developers remain wary about exposing themselves without “cast iron pre-let” activity for at least part of the development it is Chancerygate’s attitude to risk that has been rewarded.
“The Greater Bristol industrial market continues to perform in a robust manner with the 2016 H1 take up statistics recording 3.2m sq ft of building and 48.36 acres of land developed.
“This H1 take up exceeds the 10-year average for complete years which is approximately 2.2m sq ft. The Greater Bristol vacancy level at circa 3-4% compared to the 10-year average of 12% of total stock.
Chancerygate are currently under offer on another 5 acres of industrial and warehouse land in the Bristol market which they hope to be bringing forward for development in mid-2017.
Apollo Park is located on a 6.5 acre site on Armstrong Way, and is ideally positioned for Junction 18/19 of the M4 motorway, and for Junction 14/15 of the M5 motorway, as well as for access into central Bristol via the A432/ M32.
In addition to the purchase of Phase Two of Apollo Park, the two largest units in Phase 1 – 11 and 12 totalling around 39,000 sq ft – have been let to elite performance cycle company Saddleback. In addition, Unit 10 – totalling 4,000 sq ft – has recently been sold.
A variety of end users are expected to be attracted to the remaining available units, which provide flexible industrial space ranging from 3,200 to 5,000 sq ft. The units can be consolidated to accommodate larger requirements up to 18,000 sq ft if necessary.
