Bidwells has advised Barwood Capital and its development partner Goya Developments on the forward sale of Buckingway Business Park to M&G Real Estate.
The 155,000 sq ft asset is the largest speculative warehouse development built in Cambridge for 15 years and has changed hands for £22m.
Bidwells’ Saul Western said:
To fund a speculative scheme highlights the level of investor demand for modern industrial investments in such a sought after location which has seen so little new space delivered in the last few years.
The transaction has been sealed during construction of Buckingway Business Park’s four warehouse units which range in size from 25,000 sq ft up to 50,000 sq ft. The development lies adjacent to Cambridge Services on the A14 and will provide a boost to an area where there is a marked imbalance in the supply and demand of modern industrial units.
Barwood Capital forward funded the development for the benefit of its 2015 Property Fund investors. Due for completion in February 2018, the scheme is likely to attract significant occupier interest.
Sitting on Junction 28 of the A14, the multi-let development will offer easy access to Cambridge, Huntingdon and north London. The proposition is likely to become even more appealing once work is complete on construction of the new three and four lane carriageway sections of the A14 which will bypass Huntingdon and provide a fast link between Cambridge and the A1 at Brampton.
Ed Henson, Director of Barwood Capital commented:
The UK’s regional commercial property market continues to see an unprecedented demand from both investors and occupiers for well-built and well-located warehouse stock. Our development at Buckingway has been a prime example of meeting such demand. We continue to invest in the UK’s regional distribution sector, through our latest 2017 Property Fund which exceeded expectations with its £42m first close.
Goya Developments founder Jim Bryan added:
This is the second project we have worked with Barwood Capital, the first being Gatwick 55 in Crawley, which we also forward sold during construction. This is another example of developing our class leading product in a key location, with a demonstrable supply demand imbalance, to enable early success. They have proved again to be a great funding partner to work with, based on their understanding of property development and in-depth knowledge of the logistics sector, and being able to make swift, smart decisions.
A spokesperson for M&G Real Estate said:
The property is a good strategic fit for M&G Real Estate which believes there remains an acute lack of supply of modern, grade A industrial units of this small to mid-box size range for occupiers in this South East location. This investment further supports M&G’s strategy to access prime, well-specified and located industrial assets, in core locations across the UK.
Bidwells is retained as a letting agent for the scheme alongside Cheffins and Savills. JLL were joint funding agents with Bidwells.