St. Modwen has continued to grow its dedicated industrial and logistics business over the past six months (to 31 May 2019), with a committed pipeline of developments now standing at 1.6m sq ft, up from 1.5m sq ft at the beginning of the year.
As part of an ambitious yet sustainable growth plan, St. Modwen has also continued to progress its longer-term pipeline of over 15m sq ft, of which close to 10m sq ft has planning and the potential to c. £60m of ERV.
Driven by strong occupier demand, St. Modwen let 300,000 sq ft of new space in the period. Of this, 97% will be retained with an ERV of £2.2m.
Of the 1.6m sq ft committed pipeline, 94% is expected to be retained with an ERV of £10.4m. Assets retained from the 2018 pipeline are now 58% let with a further 7% under offer, up from 38% and 17% at the start of the year, with the remaining space expected to be substantially let during the rest of 2019.
The majority of the committed pipeline is focused on mid-box units between 30,000 sq ft and 120,000 sq ft, which means St. Modwen is well positioned to benefit from the growing demand for last mile delivery and warehouse space near urban areas.
The newly formed St. Modwen Industrial & Logistics business is made up of over 30 professionals across development, construction, leasing, asset management and finance, based out of four regional offices. The business now makes up 39% of St. Modwen’s overall portfolio.
Rupert Joseland, Managing Director of St. Modwen Industrial & Logistics, commented: “The unabated growth of our industrial and logistics business continues as strong customer interest drives up leasing activity and fuels our confidence to undertake further developments. We have virtually doubled our committed pipeline from this time two years ago, which shows not only where we have come from but the future trajectory for our business.
“The fact that nearly everything we have built so far in 2019 is let or under offer is a testament to our team, backed by a high-quality portfolio and progressive approach to asset management. Our pipeline and planned ERV growth now provide a clear opportunity to further accelerate development activity. We also remain open to secure new development opportunities that meet our investment and development criteria and are actively pursuing a number of sites at this time.”