Investment News | 12 April 2023

Developer to push ahead with business park’s £60m second phase

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St. Modwen Logistics has announced it will be investing almost £60 million to develop the next phase of a business park it is creating in Derby.

The firm, which is one of the UK’s leading logistics developers and managers, is to develop a further 350,000 sq ft of warehouse space at St. Modwen Park Derby, in Wyvern Way.

Due for completion in 2024, the second phase will feature a 147,000 sq ft warehouse, which has already been pre-let. A further four buildings, totalling around 200,000 sq ft will also be constructed.

Robert Richardson, development director at St. Modwen Logistics, said: “Our committed investments in St. Modwen Park Derby now exceeds £100 million and our decision to embark on the next phase of development, underlines our confidence in Derby as hub for logistics as well as high-skilled tech and manufacturing.”

Paul Simpson, chief executive at Derby City Council, said: “This is more great news for the city in what has been a bumper few weeks of major investment announcements, including the decision to make Derby the home of Great British Railways.

“It’s clear Derby is seen as a fantastic city in which to invest.”

For the first phase of St. Modwen Park Derby, St. Modwen Logistics has invested more than £45 million to deliver more than 300,000 sq ft of sustainable warehousing across four units.

Completed in December, it has already attracted two international occupiers, with German heat pump manufacturer Vaillant signing for 131,000 sq ft and Swedish medical technology company Getinge establishing a new Global Centre of Excellence for Chemistry at the scheme alongside its new UK headquarters.

According to St. Modwen Logistics, which is a Blackstone portfolio company, the quintet of new warehouses that make up the second phase will be built to its ‘Swan Standard’ for sustainable construction, meaning they will be highly energy efficient and come with an EPC A+ rating.

All five units will also benefit from the installation of enhanced rooftop solar panels, thereby helping customers to reduce their operational energy costs.

Additionally, all five buildings will aim to place in the top 10% of UK new non-domestic buildings for sustainability by targeting an ‘Excellent’ accreditation from BREEAM, the leading real estate sustainability body.

Mr Richardson said: “We expect a diversity of demand for the new units and a wide variety of employment opportunities to be generated.

“The first phase of construction on the park was a huge success and we are looking forward to working with Winvic Construction again to deliver this next phase of development.”

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