Gazeley - Industrial Development - Sheffield, Shepcote Lane
Date: 05 May 2004
Leading European logistics property developer, Gazeley has acquired a major new development site in Sheffield. The 48 acre (19.5 hectare) site was purchased from Corus and Outokumpo Stainless Ltd, which retains ownership of the adjacent site.
Gazeley's acquisition of this important South Yorkshire site marks a departure from its previous strategy of targeting sites in and around the Midlands and the South East. It reflects growing occupier interest in locations which have excellent motorway connections but also benefit from lower occupational and employment costs as well greater availability of personnel.
The site is located on Shepcote Lane, Sheffield, less than a mile from Junction 34 of the M1 (Meadowhall) and within two miles of Junction 33 (Sheffield Parkway).
On completion it will provide approximately 1.1 million sq ft (102,193 sq m) of B2 (general industrial) or B8 (storage and distribution) accommodation and will be one of only a few sites across the UK able to satisfy growing occupier demand for "supersheds" of in excess of 300,000 sq ft (27,870 sq m).
A planning application has recently been submitted to Sheffield City Council and it is expected that consent will be received within twelve weeks.
Gazeley identified and purchased the land, partly comprising a redundant British Steel rolling mill, after extensive research revealed rapidly increasing occupier demand for sites which can offer potential for large floor plates and a significant pool of economical labour, while maintaining the necessary infrastructure to make them suitable for large scale distribution development.
Nick Cook, development manager for Gazeley comments:
"The purchase of our first north of England development site has been largely driven by a shift in occupier demand for more 'off pitch' locations. We have chosen to adopt a more flexible and innovative acquisition and development programme to best serve our customers current and future requirements."
"Sheffield and the surrounding areas provide a significant pool of available labour, excellent communication links and land availability at sensible prices. All of which are vital elements for a successful distribution park."
Roger Haworth, associate at NAI Fuller Peiser says:
"I am confident that Gazeley's proactive acquisition programme will be rewarded in respect of the site at Sheffield. Occupier demand within South Yorkshire is strong, especially in this particular location, where large parcels of land capable of accommodating bulk facilities have only previously been available in Doncaster and we are already in talks with some major occupiers who are keen on the site and to invest in the city."
NAI Fuller Peiser (Sheffield office) represented Gazeley in the site acquisition, while Fowler Sandford acted for the vendors. NAI Fuller Peiser will be retained and appointed along with C2G as joint letting agents for the site. Quoting rents are expected to be in the region of £4.50 per sq ft (£48.50 per sq m).
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