The commercial property developer is constructing a new 366,000 sq ft warehouse building to the north of the 78-acre Redditch Gateway site, near Junction 3 of the M42.
Unit A, which has an end value of c.£86 million, has been pre-let to an international retailer and is expected to be complete by the end of August 2021.
The funding agreement has also facilitated infrastructure works to the south side of the site, which is now fully serviced and delivers a 9.5 MVA power supply.
Redditch Gateway will deliver up to one million sq ft of brand new office, logistics and manufacturing accommodation. It has capacity for two additional build-to-suit units of between 150,000 sq ft – 250,000 sq ft, including integral office space, secure yard and parking, with a total space of c.450,000 sq ft.
This is the third funding agreement between Stoford and Royal London Asset Management, following a £23 million investment in the Pantheon Park industrial/warehouse development in Wolverhampton and the funding of a c.£44 million car storage facility in Stone, Staffordshire.
Dan Gallagher, Joint Managing Director, Stoford said: “We are very pleased that RLAM has recognised the potential that this exciting new development offers, by making a significant investment in the scheme. There is huge pent up demand for logistics and manufacturing accommodation of this size and quality in the West Midlands. Redditch Gateway lies in a strategically important part of the region and can become a key employment location, attracting new jobs and investment.”
Daniel Shepherd, Fund Manager at Royal London Asset Management, said: “We are delighted to be partnering with Stoford again on the funding of this first class development. The funds that RLAM manage have continued appetite for good quality, well located industrial and logistics assets and this property will be an excellent addition to the portfolio.”
Redditch Gateway is located on the eastern fringes of Redditch, in a prominent distribution area of the Midlands, just 18 miles from Birmingham Airport. The site falls into two local authority areas, Stratford-on-Avon in Warwickshire to the north and Bromsgrove district to the south.
Stoford has been appointed as development partner for Redditch Gateway, working alongside the two landowners, The Gorcott Trust and Homes England.
The development is being supported by £1.8 million investment from the Worcestershire Local Enterprise Partnership’s Growing Places Fund and grant support from Greater Birmingham and Solihull Local Enterprise Partnership.