Panattoni’s big spec bet pays off

Industrial developer Panattoni is on the verge of securing its biggest UK letting deal since embarking on an ambitious speculative building programme two years ago.

Third-party logistics provider Eddie Stobart is in advanced talks to take long leases on three speculatively built units of 310,000 sq ft, 222,000 sq ft and 93,000 sq ft at Panattoni Park Northampton. It is thought the deal will be completed in two weeks’ time.

The deal would be by far the biggest letting Panattoni has achieved since it merged with First Industrial and launched its vast speculative programme in the UK in September 2017.

“All eyes have been on Panattoni since it entered the UK with ambitious spec plans to see whether it would back them up and attract occupiers,” said one senior industrial and logistics figure. “The fact that it has got the ball rolling on letting its large spec schemes is a great sign for the market.”

Panattoni has committed to 6.5m sq ft of speculative development on 16 UK sites. Its previous largest letting of spec space was 100,000 sq ft to Travis Perkins in Birmingham.

It had also made three sub-100,000 sq ft lettings, at Belvedere in south-east London, Nottingham and Luton.

The three spec units at its Northampton park are expected to be completed towards the end of this year. The second phase will comprise build-to-suit units ranging in size from 260,000 sq ft to 780,000 sq ft.

Panattoni has been one of the most aggressive buyers of UK industrial land in the past 18 months, securing sites in Borehamwood, Luton, Basildon, Swindon, Reading and Slough.

Earlier this month, it beat stiff competition from residential developers to buy the former AkzoNobel manufacturing plant in Slough.

The 30-acre site had attracted bids from housebuilders because of its residential development potential. A pre-planning application had been submitted for a scheme with 500 to 700 homes.

Panattoni’s success in landing the site highlighted the narrowing gap between industrial and residential land values.

The company plans to speculatively build industrial and logistics units in a range of sizes and is also open to interest from occupiers with build-to-suit requirements.

Burbage Realty and Savills are letting agents at Panattoni Park Northampton. All parties declined to comment.

Industrial developer Panattoni is on the verge of securing its biggest UK letting deal since embarking on an ambitious speculative building programme two years ago.

Third-party logistics provider Eddie Stobart is in advanced talks to take long leases on three speculatively built units of 310,000 sq ft, 222,000 sq ft and 93,000 sq ft at Panattoni Park Northampton. It is thought the deal will be completed in two weeks’ time.

The deal would be by far the biggest letting Panattoni has achieved since it merged with First Industrial and launched its vast speculative programme in the UK in September 2017.

“All eyes have been on Panattoni since it entered the UK with ambitious spec plans to see whether it would back them up and attract occupiers,” said one senior industrial and logistics figure. “The fact that it has got the ball rolling on letting its large spec schemes is a great sign for the market.”

Panattoni has committed to 6.5m sq ft of speculative development on 16 UK sites. Its previous largest letting of spec space was 100,000 sq ft to Travis Perkins in Birmingham.

It had also made three sub-100,000 sq ft lettings, at Belvedere in south-east London, Nottingham and Luton.

The three spec units at its Northampton park are expected to be completed towards the end of this year. The second phase will comprise build-to-suit units ranging in size from 260,000 sq ft to 780,000 sq ft.

Panattoni has been one of the most aggressive buyers of UK industrial land in the past 18 months, securing sites in Borehamwood, Luton, Basildon, Swindon, Reading and Slough.

Earlier this month, it beat stiff competition from residential developers to buy the former AkzoNobel manufacturing plant in Slough.

The 30-acre site had attracted bids from housebuilders because of its residential development potential. A pre-planning application had been submitted for a scheme with 500 to 700 homes.

Panattoni’s success in landing the site highlighted the narrowing gap between industrial and residential land values.

The company plans to speculatively build industrial and logistics units in a range of sizes and is also open to interest from occupiers with build-to-suit requirements.

Burbage Realty and Savills are letting agents at Panattoni Park Northampton. All parties declined to comment.

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