13 July 2017
Barwood Capital, with development partner Goya Developments, has forward sold its 155,000 sq ft speculative warehouse development scheme at Buckingway Business Park, Cambridge, to M&G Real Estate for circa £22 million.
Buckingway is the largest speculative consented warehouse scheme to be built in Cambridge since 2002 and comprises four warehouse units that are under construction, ranging in sizes from 25,000 sq ft up to 50,000 sq ft, due to complete in February 2018. Buckingway is adjacent to Cambridge Services on the A14 allowing easy access to Cambridge, Huntingdon and north London in an area where there is a severe imbalance between supply and demand for industrial space.
Ed Henson, director, Barwood Capital said: “We have forwarded funded this development for the benefit of our 2015 Property Fund investors which has allowed us to unlock profit at an earlier stage of the project. 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 £42 million first close.”
Jim Bryan, founder, Goya Developments said: “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.”
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 its strategy to access prime, well-specified and located industrial assets, in core locations across the UK.
Bidwells and JLL acted on behalf of Barwood Capital; Aspect Property Consultants acted on behalf of M&G. Letting agents for the scheme are Bidwells, Cheffins and Savills.