Next is on the verge of signing for one of the UK’s biggest ever distribution schemes.
The retailer has selected St Paul’s Developments’ Brookfields Park in Rotherham, South Yorkshire, for a 1.3m sq ft logistics base. Its requirement was for two warehouses of 500,000 sq ft and 800,000 sq ft.
St Paul’s director David Newton confirmed it was in talks with occupiers, but said a deal had not yet been signed.
It is not yet known whether Next plans to close any of its existing units in Yorkshire.
At the release of its half-year results in September, Next said it planned to open at least 30 more stores over the next year, adding around 940,000 sq ft and increasing its retail floorspace by 17.5%.
The Rotherham distribution scheme at the 85-acre former Manvers Main colliery in the Dearne Valley, near j36 of the M1, lies in a former enterprise zone.
The designation expired in November, but “golden contracts” ensure that projects on the site will still benefit.
One agent said: “The 100% capital allowances will give massive tax advantages to the investor and developer and means that a huge capital value will accrue.
“Next will also benefit from that.”
Rotherham council sold the site to Leeds-based St Paul’s, and its funding partner Tritax Assets, for £21.5m in spring 2004.
Lambert Smith Hampton and Knight Frank are representing St Paul’s, and would not comment. Cushman & Wakefield Healey & Baker, advising Next, would say only that a shortlist had been drawn up.
References: EGi News 05/12/05
