Major new manufacturing operations set for Redditch

Pilkington Factory Reddith

M&G Real Estate (M&G), one of the UK’s most active real estate investors, has submitted a planning application to extend and remodel its distribution warehouse in Redditch that is let to Pilkington Automotive Limited. The application follows an agreement with NSG Group which owns Pilkington, to relocate its automotive manufacturing operations from Kings Norton, amalgamating its manufacturing and distribution operations within a single 320,000 sq ft unit in Redditch.

Subject to planning consent, work on this development will start later this year to allow for NSG Group to take full occupation in Summer 2020. NSG Group’s existing Redditch distribution business will remain operational throughout and a new 20-year lease has been agreed on the extended premises.

Chris Jeffs, Director, Investment Management at M&G Real Estate, said: “Offering NSG Group the opportunity to grow their premises in Redditch is a great example of our proactive asset management approach being realised, particularly given the existing building was designed with flexibility for future expansion. We are now in a position to act on that development potential to secure our tenant’s presence in Redditch for decades to come. The proposed development will provide a scheme that meets their current and future needs as a modern, high quality combined manufacturing and distribution facility.”

Rob Purcell for NSG Group commented: “This is a very important project for Pilkington Automotive and will make Redditch the consolidated centre for our automotive operations in the UK. Our Kings Norton premises have served us well for many years but we need more modern facilities to continue to develop our glass products for our customers’ vehicle automation and electrification initiatives. The new facility will be our flagship operation as a centre for excellence in automotive glass and will support 200 jobs, with a significant transfer of skills from Kings Norton.”

Bob Tattrie for Trebor Developments commented: “We are delighted to be working with M&G Real Estate and NSG Group on this major transaction, which will see significant new employment created in Redditch and will extend the lease relationship between the parties. It is also satisfying to be working again on this development, which I originally implemented 18 years ago and at that time was one of the largest distribution centres developed in the UK”.

M&G Real Estate was represented by Trebor Developments. NSG Group was represented by JLL.