St. Modwen ramps up logistics delivery in the Midlands following first Burton Gateway letting

Leading regeneration specialist St. Modwen has secured the first letting at Burton Gateway commercial business park in Burton-on-Trent, one of the largest warehouse developments in the Midlands, providing 1 million sq ft of industrial and distribution space.

Hellmann Worldwide Logistics, global logistics experts, will become the first tenant at Burton Gateway. The company has taken a 10-year lease at the 87,716 sq ft unit, known as BG87, which was developed speculatively.

Previously a 280 acre wasteland site, St. Modwen carried out extensive highway works to support the regeneration of the area and, in turn, accelerate a key location for commercial and residential development, having worked with the local authority and key stakeholders.

St. Modwen has also recently submitted a detailed planning application for the first phase of development at its 35 acre site close to the M42, known as Tamworth Logistics Park. Phase one comprises 90,000 sq ft of three proposed which units between 12,375 and 49,000 sq ft while outline planning consent for industrial, storage and distribution uses for the full 677,000 sq ft site was obtained in January 2017.

Burton Gateway and Tamworth Logistics Park are part of St. Modwen’s growing focus on the development of industrial and logistics sites in areas of high demand across the UK. Out of the Company’s overall medium–term commercial pipeline, St. Modwen has identified 7.5m sq ft of “A1” high quality industrial and logistics projects deliverable over the next few years. During 2017 the Company expects to develop 1m sq ft of industrial and logistics space across its UK portfolio, of which 50% is already sold, let or pre-let.

Ian Romano, Development Director at St. Modwen, said:

“The letting to Hellman Worldwide Logistics at Burton Gateway for their next distribution hub demonstrates the ongoing demand for logistics and distribution space in the Midlands area.

“We will shortly submit further planning applications for four more industrial units ranging from 25,000 sq ft up to 110,000 sq ft which will be available from Autumn 2018.”

Andrew Sulston, Director of Contract Logistics at Hellman Worldwide Logistics, said:

“The opening of this DC at Burton Gateway represents the second brand new warehouse for the UK Contract Logistics division of Hellman Worldwide Logistics within the last two years and gives Hellmann the capacity to continue this rapid growth in the UK Contract Logistics market. We have worked with St. Modwen to ensure the building meets our existing and future business needs and we are delighted with the result. We are looking forward to the opportunities created by the move and the continued development of the Burton Gateway business park.”

Burton Gateway is strategically located adjacent to the A38 at the entrance to Burton-upon-Trent, with good links to the M42 and A50. Nearby occupiers include Pirelli, Unilever, Boots, Rolls Royce, Tesco and Toyota.

Savills and Knight Frank advised St. Modwen on the letting.

Colliers advised Hellmann Worldwide Logistics.

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