Construction of the first two warehouse buildings at Suffolk Park, Bury St Edmunds is set to start at the beginning of May following the signing of a partnering agreement between the developer Jaynic and PGIM Real Estate acting on behalf of institutional investors.
A £13m contract has been awarded to Readie Construction Ltd for the two units of 147,241 sq ft and 206,491 sq ft respectively on a 19-acre plot which will be ready for occupation in November this year and could bring a jobs bonanza to Bury St Edmunds.
PGIM is providing the majority of the loan finance for the site acquisition and development. Forecast rental values are £5.95 per sq ft based on standard FRI lease.
The BREEAM excellent development has a 12.5 m clear height, 50m deep service yards, level access and dock loading together with ancillary offices.
Ben Oughton, Development Director with Jaynic, comments: “We are delighted to have partnered with PGIM Real Estate for this project. These units will form the only speculative development in this area currently being undertaken. It will provide much needed stock that can be delivered before the end of 2018 and setting the scheme apart from other development sites in the vicinity, where lead in and occupation lags by anywhere between 12 – 24 months,” adds Oughton.
John Griffiths, leader of St Edmundsbury Borough Council, said: “I am pleased to see that there is market confidence to invest in and build these units. Alongside Treatt which is expanding onto Suffolk Park, these two new units will help provide a range of opportunities both for existing local businesses looking to expand, and for businesses outside of the area wishing to relocate to West Suffolk. All of this will of course create new jobs and new opportunities for our residents and continue to ensure that West Suffolk remains a great place both to live and to work.”
Jonathan Lloyd of Hazells Chartered Surveyors, the Bury St Edmunds based retained agents for Suffolk Park, said: “The speculative build of these two units is a truly significant investment into the local and regional commercial property market and underlines strong confidence in Bury St Edmunds as a place to do business. We are confident that with this forward thinking initiative by the developer and their funder, these units will help satisfy some of the underlying demand for logistic and warehouse space within the region.”
Global real estate advisors Savills in London are appointed alongside Hazells as letting agents for the scheme.
The development is part of a multi-partner initiative with St Edmundsbury Borough Council and housebuilder Taylor Wimpey to support a range of new and existing businesses in the popular Bury St Edmunds area and to continue to create jobs and prosperity.
For further information contact retained agents:
Savills 0207 4098817
Hazells 01284 702626
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