SEGRO and Roxhill Developments are to build their first speculative shed since signing a joint venture partnership agreement on Rugby Gateway in the Midlands last year.
The pair will build the 237,000 sq ft shed having recently secured consent for an 807,000 sq ft unit on the same site.
Construction will begin in January 2015, and is expected to complete in the summer to capitalise on an acute shortage of distribution space in the West Midlands.
The 1.8m sq ft Rugby Gateway site covers around 125 acres near junction one of the M6 motorway. The jv was agreed in November 2013.
IM Properties became the first shed developer to restart large-scale speculative building in May 2013. Since then, Prologis and SEGRO have made forays into speculative industrial building, although the Rugby shed will be SEGRO’s largest spec project since the recession.
SEGRO logistics director Gareth Osborn said: “Securing detailed planning consent for over 800,000 sq ft means that we can respond quickly and efficiently to demand from occupiers for large-scale, new distribution space.”
