Fiera Real Estate (“FRE UK”) and Opus Land are pleased to announce the sale of their 121,715 sq.ft state-of-the-art prominent warehouse development at Seven Stars Road in Oldbury to London Metric for £18.1million.
The XPANSE 120 Grade A warehouse has been built on a rare site of scale in the West Midlands comprising of 6.35 acres in an established industrial location, just off Junction 2 of the M5. The BREEAM Very Good unit, positioned in a prime location for warehouse logistics and manufacturing of all industries, benefits from 10% office content at first and second floors, 125 parking spaces, lorry parking and an oversized and secure yard. With assistance from West Midlands Combined Authority (“WMCA”), Opus Land and FRE UK regenerated the site which had lain open for many years prior to its purchase in 2019.
It was let to ERIKS Industrial Services Ltd, the leading UK specialised industrial services provider for a 15-year period last October, shortly after completion. The project was the largest letting in Sandwell BC in 2020, despite the unprecedented circumstances and secures much needed jobs for the local area.
The site was acquired on behalf of the Fiera Real Estate Opportunity Fund IV UK (“FREOF IV UK”), the fourth fund in Fiera Real Estate’s programmatic joint venture series with CBRE Global Investment Partners (“CBRE GIP”). FRE UK are currently fundraising for FREOF V, targeting £250m of value add and opportunistic real estate transactions in the UK.
The project also received funding from the WMCA’s Collective Investment Fund (CIF), a commercial development war-chest designed to stimulate jobs, opportunity and growth in the region.
XPANSE 120 is ERIKS Industrial Services’ new UK headquarters and advanced fulfilment centre of excellence, supporting the company’s nationwide network of regional distribution hubs and specialised engineering service facilities. The new headquarters will provide a critical element in ERIKS’ long-term plan to develop its business in the UK and Ireland, giving it the base from which to develop an even stronger mix of products and services for its customers throughout industry.
Chris Button, Fund Manager, FRE UK commented “We are delighted to have secured the letting and sale on this speculative development in partnership with Opus Land so quickly after practical completion, a testament to the quality of the building and its location. Opus and FRE UK have significant funding for more speculative industrial and logistics developments across the West Midlands.”
Richard Smith, Joint Managing Director, Opus Land commented “As a Developer of facilities in the Midlands, one never feels there is a need to justify investing in brownfield locations adjacent to a Midland motorway network.
This rather proves the point, the building was let literally the day we completed it to ERIKS in October, and sold to London Metric in December. It’s becoming ever more evident that as a Developer of industrial buildings in the Midlands we are in the right place at the right time and long may it continue!”
David Gillies, ERIKS’ CEO for the UK and Ireland, commented, “This is an exciting time for the ERIKS UK & Ireland business. We have just celebrated our 80th year as a leading European industrial service provider and are now implementing a multi-million pound investment programme that will enable us to expand and develop our entire UK & Ireland operation, creating an even stronger and more dynamic business for the future. The move to the XPANSE 120 site is foundational to our growth plan, allowing us to serve our customers from what will be the most advanced fulfilment centre of its kind. We will communicate better and deliver faster with more dynamic customer services, from facilities that will offer great opportunities for our valuable team and customers alike.”