Midlands developer Albion Land has contracted with DHL Supply Chain for approximately 1 million sq ft of space across two units at its proposed Axis J10 logistics park at J10 M40 between Bicester and Banbury.
The deal – the first to be announced – will anchor Albion Land’s proposed 3 million sq ft development as the company expands its operations in Cherwell and the M40 corridor to satisfy the rapidly increasing demand for e-commerce related logistics.
Albion Land has submitted planning applications to Cherwell District Council for the development which is immediately adjacent to the north side of the M40 at J10 (the intersection with the A43). The application is for a next generation logistics park meeting the strong market demand for high grade, environmentally sustainable and well-connected space.
Simon Parsons, Director at Albion Land, said:“Our proposals on the north side of J10 will provide approximately 3 million sq ft of outstanding commercial space in a prime location and in zero carbon buildings. This is about meeting the unsatisfied demand from major logistics operators in this region where no other suitable sites are available. We want the scheme to be an asset for Cherwell and to ensure that the region benefits from the many high-quality jobs and the boost to economic activity that the logistics sector brings.”
“Securing our first occupier is a fantastic achievement and a tremendous vote of confidence in the scheme and the location. The deal reflects the substantial increase in logistics demand as a result of the expanding ecommerce market. We understand the DHL facility will be in addition to their existing major logistics operations in the area. Our ability to offer two bespoke buildings in this location demonstrates the potential for the remaining units we are looking to bring forward.”
The masterplan proposals for Axis J10 are for a potential five large units of between 350,000 and 1,000,000 sq ft arranged across two separate development plots either side of the A43. Ultimately the building sizes will match specific logistics occupier requirements.
The total development is anticipated to create up to 4,000 jobs.
Albion Land has submitted planning applications to Cherwell District Council and, subject to planning consent, is targeting to start work on site in 2022 and to have the first buildings available for occupation in 2023.
The deliverability of the site is one of its strategic advantages with limited ground engineering and earthworks required and the site already benefitting from good connections to the M40. The two development plots would both access the strategic highway network via connections to the B4100, linking directly onto the A43 and M40 J10.
Cherwell struggles with a lack of availability for large-scale logistics buildings to meet modern occupier trends. Albion Land is looking to ensure that Cherwell can compete to secure these substantial economic opportunities by ensuring it can provide these in-demand facilities and do so within the short and immediate timeframes that occupiers want.
DHL Supply Chain’s operation of the site will support the business growth of its retail and consumer division and form important elements of its national supply chain.
Colliers International advised on the DHL transaction.