Portsmouth is having a new warehouse unit built due to limited stock supply.
Fuelled by online ordering, the booming logistics market means expanding companies are struggling to find suitable large-scale premises in the high-growth Solent region.
Paloma Capital, a private equity real estate investor, is investing £2.7 million on 5 Interchange Park, Robinson Way, just off the city’s A2030 Eastern Road.
On track for completion in January 2020, the speculative scheme comprises 28,094 sq ft of industrial/warehouse space on the ground floor and 4,248 sq ft of offices above.
One mile from the M27, known as the Solent Corridor, and 4.5 miles from the Port of Portsmouth’s gateway to Europe, the standalone unit is being built as an extension to the established Interchange Park.
Russell Mogridge, lead partner for business space at property consultancy Vail Williams, the scheme’s joint agents, said: “Due to the lack of similar stock in the city region, Paloma Capital has seen an opportunity to provide a superb new warehouse unit aimed at the booming logistics market.
“This is a prominent location, with convenient access to the motorway, Port of Portsmouth and, further along the M27, the container port at Southampton. Paloma Capital’s £2.7 million speculative scheme is a vote of confidence in the strength of the Solent’s economy, home to 50,000 businesses and a skilled workforce.
“The investment trend is being reflected nationally, with market data showing that investment in distribution warehouses in the UK reached £1.5 billion in the first six months of this year, a year-on-year rise of 5%. Given these factors, we anticipate strong interest as companies look to plan for the decade and beyond, far ahead of any current political and economic uncertainty.”
Russell added: “Great Britain’s ecommerce sales, with all the packing and delivery required, are growing rapidly – according to data from the Office for National Statistics, the market was worth £560 billion alone in 2017 and that figure is likely to be far higher this year and beyond.”
With loading doors of 8m for lorry deliveries, the headquarters also has 67 car parking spaces, an electric car charge point for four vehicles, a cycle shelter and an eight-person lift.
Russell said: “In keeping with best practice, 5 Interchange Park is targeting an energy performance certificate A, the best energy efficiency rating available, and the building has a BREEAM rating of Excellent for reduced carbon emissions.”
BREEAM stands for Building Research Establishment Environmental Assessment Method.
As part of the energy efficiencies, 70 sq m of solar panels on the roof will supplement the building’s power supply.
Surrey-based Marbank Construction, which specialises in the design and build of portal-framed commercial, industrial and retail buildings, is 5 Interchange Park’s building contractor. JLL is joint agent.
