Developing highly sustainable industrial space at a prime urban logistics location
- Investment StrategyLow-carbon logistics, Property
- Date of Initial InvestmentNovember 2023
- Bridges ExecutivesGuy Bowden
Thesis
The built environment is responsible for about 37% of all carbon emissions globally. So improving energy efficiency is of the most important factors in achieving Net Zero carbon emissions.
Meanwhile the rise in e-commerce – accelerated by the pandemic – has driven greater investment in urban and last-mile logistics; and factors such as use diversification and re-shoring are helping to sustain demand.
So low-carbon logistics facilities are becoming increasingly attractive to organisations as a way to meet consumer demand, cut operating costs, accelerate their own Net Zero journey by reducing emissions, and future-proof their real estate portfolio
Investment
Bridges and our partner Chancerygate acquired a 12-acre site known as Erdington, on Chester Road in north-east Birmingham.
The site is a prime urban logistics location in an established employment area, with excellent access to central Birmingham and the wider region via Junction 6 of the M6 motorway (just 2 miles away).
We are seeking planning consent to demolish the existing low-quality buildings in order to develop a 300,000 sq. ft. multi-unit warehouse scheme, with approx. 26 units ranging from 4,000 to 33,000 sq. ft.
Outcomes
The development will target best-in-class sustainability credentials: EPC A+, BREEAM Excellent and Net Zero Carbon in operation.
The site was previously home to a car parts manufacturer, which closed down in 2021 with the loss of over 500 jobs. We estimate that once all 26 units are occupied, they could support between 400 and 500 local jobs, in addition to those created during the construction process.