Aver, a joint venture between NFU Mutual and Ergo Real Estate, has agreed to fund the development of 330,000 sq ft at Novus Point on a speculative basis.
The agreement to fund 330,000 sq ft of logistics space at Novus Point in Newcastle-under-Lyme, Staffordshire will increase Aver’s logistics portfolio to 2.5 million square feet.
Martin Jepson, Founding Partner at Ergo Real Estate commented:
“We are delighted to be working with investment and development company Cole Waterhouse and Peveril Securities on what promises to be an impressive scheme which adds another strategic development to our growing logistics platform.”
Outline planning consent was granted unanimously in July 2020 for the development of a 15-acre light industrial scheme and a reserved matters application has now been submitted for the single build facility. Once a decision is made on the application, work is scheduled to start on site in April with practical completion due for December 2022.
The project team includes MHA Architects, Lichfields, Renaissance, Henry Riley and Novo.
Located off the A34 and close to the M6 motorway, Novus Point forms an extension to the well-established Lymedale Business Park. The development will support over 130 full-time employees during construction and approximately 500 full-time roles once the site is in operation.
Speaking about the agreement, Damian Flood, CEO at Cole Waterhouse, commented:
“There is a strong appetite from institutional funds looking to invest in potentially high-yielding, long-term income-producing assets, offering a secure return for their investors. Staffordshire acts as a gateway between the north and south and, as such, is already an established distribution location with ASDA, New Look, Parcelforce and TK Maxx all based here. These factors made the decision to build speculatively relatively straightforward.”
Ralph Jones, Managing Director at Peveril Securities, continued:
“This is a significant step forward in the development of Novus Point, made possible by the collaborative way in which all stakeholders have worked together. Securing Aver as a funding partner further strengthens our ability to deliver the scheme and, subject to a positive planning outcome, we look forward to building out this new facility next year.”
Metis Real Estate advised Cole Waterhouse and Peveril Securities on the funding deal with Sixteen Real Estate acting as the marketing agent for the scheme. Burbage Realty represented Aver.
Novus Point is projected to generate up to £37.3million GVA for the local economy. In addition to the creation of permanent jobs through the operation of the industrial units, it is anticipated that around 144 construction and 169 supply chain jobs will be supported during the two-year build programme with a total investment in the region of £19.9m.
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