Southampton: Speculative industrial site signals market confidence
Work has started at the site of a development of high-quality industrial units in a scheme which will bring significant investment and an estimated 750 new jobs to the region.
The South Central development at Test Lane, Nursling, is the first speculative new industrial development close to the Port of Southampton in a decade and will create three new units with a combined value of over £30 million.
Southampton commercial property specialists Lambert Smith Hampton, the joint letting agents with JLL for the units, says the scale of the project signals market confidence in the continuing growth of the region’s economy.
Engineers have begun road improvement works associated with the 11-acre development, where the new buildings, designed for storage and distribution use, will be constructed.
The preliminary works include the widening of Test Lane to improve road access to the site from Junction 1 of the M271 at Nursling. The project has full detailed planning consent and agreements in place and is on track to be completed in the first quarter of 2018.
The three units measure 39,075 sq ft, 49,965 sq ft and 116,895 sq ft and cover a total of 16.13 acres including a linear park.
The site’s strategic location, within two miles of Dock Gate 20 of the Port of Southampton, its 24/7 hours of operation and close transport links to the M27 and M271 have resulted in a high level of interest from potential occupiers.
Adrian Whitfield, industrial & logistics director based in the Southampton office of LSH, said: “We have already seen significant interest in the three units at South Central from several businesses whose work relates to the Port of Southampton, and also from companies in the parcel distribution, storage and manufacturing sectors.
“A speculative development of this scale in such a strategically important location is a huge show of confidence in the region, particularly in Southampton’s position as a key hub for international trade.
“It reflects the mood that we’re seeing across the South, where we are seeing significant growth and resilience in the commercial property investment market. We are very proud to be involved in South Central, a development which brings with it positive investment in infrastructure, hundreds of jobs and wider economic benefits to the region.”
The development is being carried out by specialist UK logistics and industrial property specialist Peel Logistics Property, which recently completed the acclaimed Island Road development of 21 acres of industrial and logistics units in Reading. Its funding partner is Rockspring Property Investment Managers LLP, which has €7.9 billion of real-estate assets under management invested in 13 countries across Europe.
Neil Dickinson, chief operating officer at Peel Logistics, said: “We are delighted to be starting work on South Central, having worked tirelessly with planning officers and the local community to create a development that is entirely relevant to Southampton’s economy and sympathetic to the requirements of the local community.
“This is an opportunity which will bring a huge amount of investment to the region while helping to satisfy the high level of demand for large commercial property units in the Southampton area.”
