Caddick Group, a Yorkshire-based family-run construction and property development firm, is to build a £50m GDV distribution centre near Wakefield, Yorkshire for global real estate investment manager AEW.
AEW will buy the site from Caddick Group and fund the development for its recently launched €290m develop-to-core UK logistics venture with Allianz.
Caddick Construction have been appointed as the main contractor to deliver the 512,000 sq. ft. facility, now named Wakefield 515.
Wakefield 515, previously known as Cross Point 33 phase two, will sit next to the already completed Cross Point 33 phase one, a £100m 1.2m sq. ft. distribution centre now occupied by TJX Europe, parent company of retail brands TK Maxx and HomeSense.
Caddick Construction built Crosspoint 33 phase one and is currently working on a host of other industrial and logistics schemes, such as the £10.7 million Novus Business Park in Knutsford, for Chancerygate.
Located at Junction 33 on the M62 motorway, Wakefield 515’s strong transport connectivity is expected to appeal to retailers, e-commerce businesses and 3PLs, which would typically look to take a ‘big box shed’ facility like Wakefield 515.
Being a cross-dock facility, occupiers will benefit from up to 100m yards, 80 dock doors, 229 HGV parking spaces and will be built to market leading specification with a BREEAM ‘Very Good’ rating.
Start onsite will be early next year. The building is due to be delivered by Q4 2020 and will be marketed jointly by Dove Haigh Philips and JLL.
Caddick Group posted its annual results for the year ending 31st August 2018 in March this year, announcing a record turnover and a market-leading £5bn development pipeline spanning ‘beds and sheds’ – residential and industrial/logistics.
The Group’s build-to-rent housing brand Moda Living opened its first development, Angel Gardens in central Manchester, last month.
The Group is also due to start on-site with the first phase of its £300m SOYO neighbourhood in Leeds city centre, a 515-home BTR scheme that Caddick Construction will build for Moda Living.
Myles Hartley, managing director at Caddick Developments, said: “As a Group our focus is on structurally-supported asset classes such as build-to-rent and industrial/logistics, where we see long-term growth potential. Wakefield 515, which follows on from our successful Crosspoint 33 development, will be a landmark scheme in terms of size and scale and we are keen to start on-site, creating hundreds of jobs locally both during and after construction.”
Nick Winsley, managing director and head of investments at AEW UK Investment Management, commented: “This acquisition is an excellent opportunity for AEW. The UK logistics sector is demonstrating historically strong take-up, occupancy levels and rental growth with very little new Grade A supply in the Yorkshire market for larger warehouses.”