November 6, 2017
Rolls-Royce has agreed a tie-up with Manse and Opus Land to build out a £250m, 200-acre manufacturing hub on its land near Coventry.
The pair – both of which are part owned by Palmer Capital – have been appointed to deliver more than 2m sq ft of space in one of the largest manufacturing deals the UK has seen.
Competition from the logistics and residential sectors means there is very little manufacturing space being built in the UK – a supply imbalance the partners intend to take advantage of. Interest has reportedly already been expressed by several occupiers.
Richard Smith, managing partner at Opus Land, said: “The reason why it’s very different is because it’s very new. If we go back to Margaret Thatcher’s time, there was very much a move to take manufacturing out of the UK. It was felt that it was no longer important – that was a very poor mistake.
“With the resurgence of Jaguar Land Rover, suddenly we have a demand for manufacturing again, which is totally different to doing logistics space, because you are not just building a lofty warehouse that you rack out.”
The site is to the south of Ansty Park, a 1.5m sq ft technology hub that has been attracting automotive and aeronautical companies, and is anchored by the Manufacturing Technology Centre.
The plan is to work up a scheme, obtain planning consent, and build out for occupiers. The most likely end result, though nothing is fixed, will be the park’s sale to an institutional investor when it is complete.
Manse formed a relationship with Rolls-Royce through the regeneration of its former works in East Kilbride.
David Mitchell, managing partner at Manse, said: “This is a regeneration opportunity of a major manufacturing facility, that has not come to the end of its life because Rolls-Royce is still going to be on site and very active, but is releasing much needed land where there is pent up demand for manufacturing accommodation.
“Our role is to promote this site through planning but also to ensure any occupiers that come along are looked after and potentially we will build buildings or sell plots to them.”
Author: Alexander Peace
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