St. Modwen Logistics is behind the three unit scheme in Basingstoke.
The 11.3-acre site will be developed in several phases with the first phase set to complete this autumn. Three units of 36,987, 51,572 and 97,781 sq ft will meet growing demand for uyrban logistics providers.
The scheme is between Junction 6 and 7 of the M3 and 2 miles of Basingstoke town centre.
“The demand for urban warehouse space in this region continues to grow,” said Andrew Newman, Consultant at Hollis Hockley. Joint agents are London Clancy and Savills.
The start on site comes after St Modwen signed footwear distributor Gardiner Brothers & Co, to a 116,000 sq ft unit at St. Modwen Park Gloucester.
Such is the demand for logistics warehouse investments that yields sub 4% are commonplace and investors are finding that they cannot source product to buy.
According to Savills latest Big Shed Briefing, investment volumes for distribution warehouses reached £4.7 billion in 2020, a 25% increase on 2019 figures and £500m higher than the previous watermark of £4.2 billion set in 2014. This is despite the fact capital markets all but ceased at the height of the initial Covid-19 lockdown.
In relation to the pandemic, Savills notes that 76% of all capital was deployed in the second half of the year once trading could resume in a Covid-secure manner.