Chancerygate and Hines have purchased a 3.75-acre site at the Advanced Manufacturing Hub in Aston to speculatively build a new 19-unit industrial and warehouse scheme with a gross development value (GDV) of around £14m.
The site is the fifth acquisition for the joint venture (JV) between industrial developer and asset manager Chancerygate, which opened an office in Birmingham city centre last November, and international real estate firm Hines.
Totalling 93,000 sq ft, the proposed scheme will provide units ranging from 2,500 to 9,000 sq ft. Chancerygate and Hines will submit planning proposals for the development in the forthcoming months with completion scheduled for autumn 2020.
Located immediately adjacent to junction 6 of the M6 and only two miles north of the city centre, the Advanced Manufacturing Hub is a joint initiative between Birmingham City Council and Homes England.
The Advanced Manufacturing Hub is already home to world-leading precision cutting tools manufacturer Guhring, global hydraulic cartridge valves manufacturer HydraForce and international medical device manufacturer Salts Healthcare.
Commenting on the site acquisition, Chancerygate managing director, Richard Bains, said: “This was a very attractive site for our joint venture to acquire, as it is already a well-established regional hub for advanced manufacturing. We will be building high-quality, smaller industrial and warehouse units which will complement those already on site.
“Chancerygate opened its Birmingham office last year as part of our strategy to capitalise on development opportunities in the West and East Midlands. This approach is working well and we look forward to further expanding our operations throughout the region.”
Chancerygate and Hines launched their JV last September. With a GDV totalling around £100m, the portfolio of industrial space now represents 643,000 sq ft across additional developments in Bournemouth, Nottingham, Tonbridge and Cheltenham.
Greg Cooper, Hines UK director of industrial and logistics, said: “This site represents another exceptional acquisition for the joint venture, extending our track record of moving at pace to identify and secure the most sought-after locations where we can speculatively develop high quality industrial facilities in markets where demand is significantly outstripping supply.”
Councillor Ian Ward, Leader of Birmingham City Council, comments: “I am delighted that Chancerygate and Hines have chosen to make this significant invest at the Advanced Manufacturing Hub. The AHM has attracted a number of major manufacturing companies, created over 1,500 jobs and attracted over £70 million of private sector investment. This development will provide a number of starter units which will support the SME sector within the City, complement the larger occupiers at the site, and create further local employment opportunities.”
Chair of the Greater Birmingham and Solihull Local Enterprise Partnership, Tim Pile, said: “The news that Chancerygate and Hines have chosen the Advanced Manufacturing Hub for their development scheme is testament to our world-class advanced manufacturing and engineering facilities. The choice to locate the scheme here is proof that we are creating the right business environment for private investment and regional growth, and that we are delivering on our strategic objectives – to grow the economy, create quality jobs and facilitate a sustainable supply chain in developing manufacturing industries.”
Homes England senior specialist, Stuart Buckley, added: “We have played a vital role in land assembly, demolition and remediation works to bring this land forward for commercial development with Birmingham City Council.
“This in turn is reinforcing Aston as a location for high value manufacturing so it’s great to see Chancerygate joining the growing list of companies investing in world-class facilities at the Advanced Manufacturing Hub to provide skilled manufacturing jobs for local people.”
Chancerygate is the UK’s largest multi-unit industrial developer and asset manager and the only one operating nationwide. This year, the business will triple its completed developments compared with the previous year, delivering more than one million sq ft across 13 schemes compared to 340,000 sq ft in 2018. In addition to its Birmingham base, the developer has offices in London, Warrington and Milton Keynes.
Hines manages a combined UK commercial property portfolio worth more than £2bn and has advised on more than four million square feet of projects acquired, completed or in the pipeline.
Colliers and Savills have been appointed as sales and lettings agents.