Tungsten Properties, one of the UK’s leading mid-box industrial and warehouse developers, funded by British Airways Pension Trustees Limited, has acquired 25 acres of land at Severn Road, Avonmouth, Bristol from Delta Property Holdings for £11 million.
The 25-acre scheme is across two plots to the north and south of Severn Road and will accommodate a 457,000 sq ft (42,456 sq m) logistics scheme across six buildings, ranging from 16,000 sq ft to 240,000 sq ft. It is estimated that the project will help to create more than 300 new jobs.
The site benefits from an existing outline planning permission. Tungsten Properties is committed to deliver phase one which will be two industrial units totalling 80,000 sq ft and 240,000 sq ft. Construction is due to start in September 2021 and the two buildings will be completed by summer 2022.
Phase two will be four smaller buildings which will range from 20,000 sq ft up to 62,000 sq ft to total 125,000 sq ft.
Avonmouth is a well-known and established south-west distribution location due to its thriving port and links to the M49 and M5. Occupiers include Amazon, Lidl, Tesco, DHL, Next, The Range, Coop, Acolade Wines and Asda.
This is the fourth deal where British Airways Pension Trustees has funded Tungsten Properties, with the three projects being: Super W in Warrington, Super B in Bradford and Calder Park in Wakefield.
Ian Dunckley, development director, Tungsten Properties said: “With Avonmouth being such a well-connected place with a strong workforce in nearby Bristol and South Wales, it is ideal for logistic occupiers. With retail habits changing and consumers purchasing more online, the warehouse distribution market is expanding and we aim to capitalise on this growth. To meet the demand, we will focus on the two larger units. We have built up a strong relationship with British Airways Pension Trustees and look forward to delivering this next significant project with their support to deliver high-quality logistics space and jobs.”
Russell Crofts, partner, industrial and development, Knight Frank, who acted on behalf of Tungsten Properties added: “This purchase reflects another major vote of confidence in Bristol as the prime location for logistics throughout the region. Tungsten has a proven track record of delivering high-quality developments, and the proposed scheme will reflect this reputation. Over the last 12 months, demand has been extremely high throughout the region, and we expect the new purpose-built distribution units to immediately meet this lack of supply in a highly active marketplace.”
Knight Frank has been appointed letting agent.