St Modwen commences 1.5m sq ft industrial and logistics development programme
St Modwen has launched its latest industrial and logistics development phases as part of plans to deliver c1.5m sq ft of high-quality space in 2021.
With the first construction activity starting this month, St Modwen will be active on 11 schemes to deliver over 25 new units in key locations across the UK as businesses continue to bolster supply chains.
This latest build programme further unlocks the potential in the company’s 19m sq ft future pipeline, 45 per cent of which already has planning. In July, St Modwen confirmed being on track to deliver 1.2m sq ft of new space during 2020 with 53 per cent of associated GBP7.7 million ERV let or under offer, up from 18 per cent of committed pipeline at start of 2020, reflecting continued strong demand.
Industrial and logistics represents an important growth area for St Modwen and now accounts for 48 per cent of the company’s total portfolio, delivering an attractive circa 8 per cent yield on cost and circa 9 per cent yield on incremental capex. The company’s activities help to stimulate local and national economic investment and is underpinned by major trends, including the rise of e-commerce and reliance on resilient supply chains, both of which have been sped up as a result of COVID-19.
Rupert Joseland, Managing Director of St Modwen Industrial & Logistics, says: “As leasing momentum remains strong, we are excited to be pushing the button on new developments to further expand our portfolio. We have one of the UK’s biggest pipelines and focus on building out high-quality developments in key strategic locations. From major e-commerce companies and logistics firms to regional and specialist businesses, we are here to deliver for our customers and enable them to thrive in our modern and sustainable parks across the UK.”