A 121,175 sq ft warehouse/industrial unit being speculatively developed in the Black Country by Opus Land and Palmer Capital is being brought to market by national commercial property consultancy Lambert Smith Hampton (LSH) and JLL.
Leading UK property developer Opus Land has instructed LSH and JLL to market its new XPANSE 120 development at Seven Stars Road in Oldbury, near West Bromwich.
Opus Land and Palmer Capital have acquired a rare site of scale in the West Midlands, comprising 6.35 acres in an established industrial location, just off Junction 2 of the M5. The site has been acquired with vacant possession and is funded by Palmer Capital Development Fund IV, a programmatic venture managed by Palmer Capital that is exclusive to clients of CBRE Global Investment Partners (CBRE GIP).
The project will also receive funding from the West Midlands Combined Authority’s (WMCA’s) Collective Investment Fund (CIF), a commercial development war-chest designed to stimulate jobs, opportunity and growth in the region.
Opus Land plans to capitalise on the distinct lack of Grade A warehouses in this location by speculatively building a 121,175 sq ft B2/B8 unit and will market the scheme formally to occupiers. The unit will benefit from 10% office content at first and second floors, 125 car parking spaces, lorry parking and an oversized and secure yard.
This is the second scheme the WMCA has backed Opus Land on, after awarding the company funds from the Combined Investment Fund (CIF) to develop two industrial units covering 14 acres, which will provide a total of 283,000 sq ft of accommodation at the former Kingswood open-cast colliery, near Cannock.
Matthew Tilt, industrial agency director at LSH in Birmingham, said: “This will be a Grade A warehouse unit in an extremely convenient location, being close to junction 2 of the M5 and a short distance to the M6. It is well documented that there is a severe shortage of high quality stock across the West Midlands, and so I am confident there will be many companies interested in relocating to this new Opus Land development.”
Tom Edgar, development director at Opus Land, said: “We are delighted to be involved in bringing forward this fantastic site in Oldbury for much-needed quality industrial accommodation in the heart of the Black Country. We will start construction speculatively, with completion due in Spring 2020, knowing that units of this size and location are in very high demand. We will offer a rare, flexible approach to occupiers seeking either freehold or leasehold options in new-build Grade A facilities.”
Andy Street, the Mayor of the West Midlands, said: “This is yet another example of how, by working collaboratively with partners in the public and private sector, we are able to unlock unwanted brownfield land, in this case a former scrap yard. This site will now no longer be a blight on the area, instead it will become a large industrial unit capable of supporting many jobs and businesses here in Sandwell.
“As demonstrated at Kingswood Lakeside in Cannock, and Prospero Ansty in Coventry, Opus Land are capitalising on these opportunities bringing successful and award winning schemes forward. We are working hard across the West Midlands to clean up derelict and contaminated brownfield sites like this to prepare them for development, creating the jobs and houses our region needs.”
Ed Bradburn, Frontier Development Capital, investment director for the CIF said: “The WMCA CIF previously supported Opus Land in December 2016 to progress a speculative industrial scheme at Kingswood Lakeside, Cannock, which resulted in the successful sale of a newly constructed warehouse unit earlier this year.
“We have every confidence that the Severn Stars Road site will achieve the same success. It’s a great example of the fund in action, as the scheme is bringing a vacant site back into use to meet an increasing need for industrial units in the Black Country.”
Richard James-Moore, director of JLL, said: “There is a dearth of Grade A industrial accommodation in the Black Country which both Opus Land and Palmer Capital are seeking to address by committing to speculatively build XPANSE120, a 121,175 sq ft industrial warehouse. We are delighted to be part of the team bringing this property to market.
“The strategic location, adjacent to the M5 at J2, together with the property being available on both a freehold and leasehold basis provides a confidence there will be strong demand for this property.”