Warehouse REIT has received planning consent for the 1m sq ft final phase of its North West logistics hub at Crewe.
The development will be part of the 1.8m sq ft Radway Green scheme near J16 of the M6, which is being delivered in partnership with Panattoni.
The urban and last-mile industrial warehouse investor secured a resolution to grant outline planning permission from Cheshire East Council for five units ranging from 90,000 sq ft to 400,000 sq ft.
Warehouse REIT has been assembling a 102-acre site since 2017. Last year it secured planning for 803,000 sq ft of warehouse space across six high-bay units, ranging from 22,000 sq ft to 340,000 sq ft.
Earlier this year, Warehouse REIT signed a development agreement with Panattoni, which will be responsible for delivering the 1.8m sq ft project, with the REIT funding and retaining the completed scheme.
Andrew Bird, chief executive at Tilstone Partners, investment adviser to Warehouse REIT, said: “This is a significant milestone as we accelerate the delivery of what will be one of the premier logistics hubs in the North of England. While the primary focus is the current investment portfolio, we have a high conviction in the attractive risk-adjusted returns that select development can generate in the current climate.”
Warehouse REIT said the logistics market dynamics in the North West “remain highly compelling”, with vacancy rates at record lows of 3% and H1 take-up 103% above the long-term H1 average. Savills recently highlighted a dearth of high-quality stock, suggesting that actual rental growth in the region will exceed the forecast 19.4% over the next five years.
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