Transforming a West Midlands brownfield site into a large logistics hub with £22m development facility.
The idea
A long-disused brownfield site next to Junction 2 of the M54 in Wolverhampton is being transformed into a sustainable logistics and manufacturing hub, looking to boost economic growth and generate jobs in the West Midlands.
With the UK’s consumer appetite for online retail continuing to rise, the demand for larger logistics hubs has also increased. The Midlands in particular has become a favoured spot for manufacturers and couriers to base their operations, providing excellent nationwide distribution links thanks to its central location and easy access to the motorway network. The plan for the development comprises of two huge, high-tech warehouses with a combined floor space of 380,000 sq ft.
In order to undertake the massive project, the developers needed a lender that could liaise with the different stakeholders involved, and ensure that the required funding would be available at every stage of the development.
The enablement
As a trusted financial partner within the commercial development sector, we spoke with the developers and other key stakeholders about the project to understand the requirements and challenges facing them, including building on a brownfield site.
Using a common-sense approach to lending, we were able to provide the £22 million development facility needed to get the project underway.
“Together’s funding has brought forward the bespoke development of a logistics hub at a prime location in the West Midlands,” Philip Meakin, Director of PIN Properties, the agent acting on behalf of the borrowers, commented. “This is a major project that has been in the planning for a long time.”
The result
With funding secured, construction on phase one of the eagerly-awaited project could progress with the completion of the first of the high-tech warehouses.
Marc Goldberg, CEO of Sales and Distribution at Together, said, “PIN Property are well-known and highly respected experts in commercial property. We’re pleased to be their funding partner on this exciting new development.”
“The location has been a long-term vacant brownfield site in an area designated by local and national planners as key for supporting economic growth. Once operational, it will have huge benefit to the regional economy, so we’re pleased that our finance is creating such a sustainable manufacturing and logistics centre, supporting jobs and continued prosperity in the West Midlands.”
Once the second phase of the development is complete, the entire site is projected to have a development value of £60 million.
With an estimated 36.5 million sq ft of new industrial and logistics space needed by 2028 to support the growing service sector, once-abandoned brownfield sites that are close to great transport links will start to become sought after, as businesses compete for the most strategic distribution bases.
If you’re a commercial developer looking for a finance partner to support you at every step of your development, speak to one of our expert team to find out how we can help you.
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