Plans to develop the next phase of a flagship employment and distribution hub in Bolton have been revealed.
Harworth Group plc has announced this morning that is has entered into a joint venture with the Lancashire County Pension Fund (LCPF) to develop the next phase of the Logistics North development.
Logistics North is the largest live commercial development in the North West of England.
Ten new commercial units across 31.2 acres are expected to be delivered at the site, through this joint venture agreement.
This is the seventh deal at Logistics North in the past three years. Most recently Whistl took a ten year lease on a unit, following the likes of Aldi, Lidl, MBDA, and Joy Global.
Councillor Cliff Morris, Leader of Bolton Council, said: “The news that a deal has been finalised to secure even more development and investment at Logistics North is fantastic.
“The site is already a huge success with a number of major companies already operating from there and this agreement will bring even more investment to Bolton and provide new jobs for our residents.
“I am confident that there will be other exciting announcements about Logistics North for many months to come.”
LCPF will fund 80 per cent of the acquisition and the development, with Harworth funding the remaining 20 per cent.
The new units will be constructed in three separate phases. Three units are due to be constructed in the first phase – ranging from 45,000 sq. ft to 64,000 sq. ft – by the end of December 2017, with Buckingham Group already appointed as principal contractor.
The second phase will deliver six new units – ranging from 19,000 sq. ft to 149,000 sq. ft – during 2018, whilst the final unit of 131,000 sq. ft will be constructed in the third phase. All units will be made available for leasehold occupation upon completion.
Ian Ball, Executive Director of Income Generation at Harworth Group plc, said: “Logistics North has established itself as one of the North of England’s leading distribution locations and we have widely explored property venture transactions to capture development management, asset management and promotion fees from its future phases to continue to grow our income base.
“This deal both crystallises our land value and provides further income-producing opportunities for the business, providing much-needed high quality industrial and logistics space in a region with a scarce existing supply.”
Richard Tomlinson, Investment Director – Real Estate and Infrastructure at Local Pensions Partnership, added: “LPP on behalf of Lancashire County Pension Fund is pleased to be working with Harworth on this exciting property development project to deliver best in class logistics facilities in its home region of the North West of England.
“By investing in the North West, the Lancashire County Pension Fund expects to benefit the local economy at the same time as delivering the investment returns required of the fund.”