UK Real Estate Investment Trust, RDI REIT has announced a £26 million forward funding agreement which will see the speculative development of two new warehouse units at Albion Land’s Link 9 in Bicester.
Situated on a 40 acre site, Link 9 is a major new distribution, production and headquarters development, strategically located close to Junction 9 of the M40. Construction has started on phase three, which will see a new 120,225 sq ft high quality distribution unit built, ready for occupation in April 2019. RDI will also fund development of phase four, a 168,058 sq ft unit which is expected to be ready for occupation in November 2019.
“With the current lack of availability of high quality industrial space across the UK, this speculative development will be well received in the market,” said James Haestier, Director, Industrial & Logistics, Colliers International. “Link 9’s strategic location, close the M40 and surrounding motorway networks, coupled with the extensive labour pool which serves the area – further enhanced by new houses planned for Bicester - will no doubt generate strong occupier demand.”
This latest funding announcement follows the recent news of the pre-sale of 81,222 sq ft to British Bakels in the first phase of development and the impressive progress at Network; the phase of smaller speculative units ranging from 14,000 to 30,000 sq ft, where four of the seven units have been pre sold. Upon completion, the site will total 530,000 sq ft of employment floor space.
Albion Land developed the first phases of construction at Link 9 and will continue on as development partner to oversee the construction of phase three and four, following the sale of the 13.5 acres to RDI REIT.
Simon Parson, Director, Albion Land, added: “The success we have had with the initial phases at Link 9 is encouraging and we have already had strong interest from occupiers on the two new speculative units. When fully occupied Link 9 will provide some 1,000 high quality jobs and will be a significant contributor to Bicester and the wider Oxfordshire economy.”
Sarah Jones, Senior Asset Manager, RDI REIT, concludes: “The acquisition of high quality distribution assets in Bicester, through a forward funding agreement, presents a clear opportunity to increase our exposure to a sector with strong structural support and rental growth prospects, at an attractive entry price."
Colliers International, VSL & Partners and White Commercial are jointly marketing the speculative space at Link 9.