Multiply Logistics North Secures Third Letting in Six Weeks as Market Remains Strong

Multiply Logistics North (“Multiply”), the new commercial development at Harworth’s Logistics North site in Bolton being delivered through a joint venture between Harworth and the Lancashire County Pension Fund (“LCPF”), c/o Knight Frank Investment Management (KFIM), has signed a third new tenant for its commercial units in the past six weeks, reflecting continued strong demand for industrial units in strong locations in the North West.

The joint venture has completed the letting of Unit F2/J, a unit of 24,636 sq. ft, to the Incontinence Shop, the largest stockist of incontinence products in the North West. It has taken a ten-year letting at a rent of £7.50 per square foot and will be using the unit as a depot for distribution. This deal follows recently announced lettings with Solus and an unnamed pharmaceutical supplier on ten-year leases for similar size units and leaves just two of Multiply’s nine built units, one of 55,556 sq. ft and the other of 149,198 sq. ft, remaining available for long-term letting.

The progress of Multiply Logistics North, a joint venture between Harworth and the LCPF c/o KFIM, has been impressive given it was only created in May 2017. Since then it has received consent for and built 434,000 sq. ft of energy efficient units, letting over nearly 230,000 sq. ft of space to seven tenants including rijo42, Hardscape, the PJH Group and UW Homes Services, all on long-term rents with the majority above £7.50psf. Demand for its two remaining units remain strong and are anticipated to be let over forthcoming months.

The joint venture involves LCPF funding 80% of the acquisition and the development, with Harworth funding the remaining 20%. The parties took corresponding interests in Multiply Logistics North, with Harworth undertaking development management and asset management roles on behalf the joint venture. B8 Real Estate, Jones Lang LaSalle (JLL) and Knight Frank are acting as joint agents for the scheme.

Steven Knowles, Director for the North West at Harworth Group plc, commented:

“This is what Harworth and its partners do best – delivering the new jobs and investment that we forecast when we design our developments. We have a growing pipeline of sites in the North West, reflecting its importance to the business, and I look forward to delivering further new jobs and homes as part of its regeneration.”

Tim Powner, Asset Manager at Harworth Group plc, added:

“Three new lettings in six weeks shows that the North West industrial market remains in good shape and continues to grow. Our focus as a joint venture remains getting the final two built units let and levels of demand suggest that we should achieve this in short order.”

Piers Windsor, Senior Investment Manager at Knight Frank Investment Management, further added:

“We’re very pleased with how Multiply Logistics North has developed over the past two and a half years, realising a strong income stream for the Pension Fund & Harworth whilst delivering hundreds of new jobs for Bolton and Greater Manchester. We are confident that the existing scheme will be fully let shortly.”

Paul Thorne, appointed agent at B8 Real Estate, said:

“We’re very pleased with how Multiply Logistics North has developed over the past two and a half years, realising a strong income stream for the Pension Fund & Harworth whilst delivering hundreds of new jobs for Bolton and Greater Manchester. We are confident that the existing scheme will be fully let shortly.”

Harworth received outline planning consent for Logistics North, the largest live commercial development in the North West of England, at the end of December 2013. Nearly 6,000 people are now employed on the site by occupiers including Amazon, Aldi, Whistl, MBDA, Greene King, Costa and Komatsu. Once complete, the development will deliver over 7,000 jobs and add around £300m in Gross Value Added to the Greater Manchester economy per annum.

The completed Multiply units have been built to a specification designed to offer high quality and flexible business space to occupiers. This includes a BREEAM rating of ‘very good’, office space comprising 5-10% of the overall internal area, secure service yards with 38-50 metre depth and bespoke fit out solutions being available.