UK Land Estates has announced plans to invest over £35m in the North East of England over the next two years.
Tens of millions of pounds have been ring-fenced to construct over 270,000sq ft of new, Grade A industrial and warehousing space throughout 2025/2026.
Over £12m has also been set aside to refurbish and retrofit several units across its business parks spanning Northumberland to Teesside.
All of the new build developments are speculative, with over 200,000sq ft on Team Valley, and 25,000sq ft in Teesside.
Moreover, the business has – or is in the process of – securing outline consent for a further 600,000sq ft of space across its core estates.
Keith Taylor, managing director of UK Land Estates, says: “There is still a supply and demand imbalance in the region for high quality, well located industrial space, evidenced by our recent building programme and successful leasing activities.
“Last year, we brought several new units to market, ranging from 9,000 to 72,000sq ft, to fit a range of industry sectors and sizes and the team delivered a superb product, with most letting on or before practical completion.
“With all of our speculative schemes benefitting from both B2 and B8 consents, the flexibility caters for the increased demand for logistics and warehousing space as increasing numbers of businesses shift to trading online, but also the region’s growing advanced manufacturing and engineering industries.
“We’re blessed as a region to have an incredibly skilled workforce and great location, which is why so many businesses want to invest here, however if we are to continue building on this momentum then we must ensure we have the space available those seeking to grow or relocate here, and hopefully these develops can help us ensure that.”
The investment drive follows a £20million outlay by UK Land Estates last year, which saw five new units constructed at Team Valley Trading Estate, Teesside Estate, Nelson Park Industrial Estate and Tyne Tunnel Trading Estate.
This included a 72,898sq ft industrial and warehousing facility at Tyne Tunnel Trading Estate, a new drive-thru Starbucks at Teesside Estate in addition to three speculative industrial units and a 44,000sq ft facility for LeGrand at Cramlington’s Nelson Park Industrial Estate, which is currently underway.
Taylor adds: “We are one of the few developers that continue to speculatively build in the region, irrespective of some of the macro-economic challenges that face the industry.
“We own our land and have a team that can deliver quality buildings for business, creating new and refurbishing stock on existing estates where there is currently facility and infrastructure mitigates risk, while allowing us to assist our current tenant base with their business demand.
“Looking ahead, we are hopeful that this latest investment drive will further build on the £20m we’ve invested over the last two years and act as a catalyst for further economic growth across the region.”