CBRE wins industrial development instruction

CBRE’s industrial agency team in Birmingham has been instructed on a major new development scheme in Banbury, Oxfordshire.

The 60-acre site, which is situated at junction 11 of the M40, is being developed by Barwood Developments Limited, with funding from the British Airways Pensions Fund.

CBRE has been appointed as joint agents, along with White Commercial, to market the scheme, called Central M40, to potential occupiers. Up to 1.24 million sq ft of prime industrial and distribution space can be built on the site, with design and build units from 100,000 sq ft.

The developers hope the scheme’s proximity to Coventry and Oxford will help it attract occupiers from the automotive industry.

Nick Waddington, a senior director in the industrial agency team at CBRE in Birmingham, said: “The Midlands’ automotive industry has enjoyed something of a resurgence recently with manufacturers such as Jaguar Land Rover and Peugeot confirming their commitment to the region with both car firms announcing plans to build new facilities in Wolverhampton and Coventry respectively.

“With Central M40 being situated at the heart of the Midlands’ distribution network and within easy reach of Coventry and Oxford we fully expect it to attract occupiers from the automotive sector.”

Mr Waddington said there was an under supply of good quality industrial units in the Midlands, particularly over 100,000 sq ft, which means occupiers are now having to consider design and build options.

“This year has seen the continued erosion of good, modern sheds across all sectors and at all ends of the scale. In the retail market, the drive for bottom line efficiency has led to companies rationalising their operations, while a significant pick-up from third party logistics operators has helped to absorb some of the existing stock.

“At the lower end of the scale, there are very few existing sheds under 100,000 sq ft, which will inevitably lead to speculatively built units being considered again. However, this is unlikely to happen with large units.

“Instead, larger requirements will have to consider design and build options, where we expect activity will increase, particularly in core distribution locations such as the Midlands.”

To launch the Central M40 development to the Birmingham market, CBRE held an event at Opus restaurant for more than 30 guests from the property sector.

 

Picture caption (L-R): Richard Meering, CBRE, Henry Chapman, Barwood Developments, and Nick Waddington, CBRE.

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