Construction work has begun on a new speculative industrial development in the Black Country.
London-based Topland Group is working with Gloucester contractor EG Carter on the project in West Bromwich which will see a new 45,000 sq ft logistics facility built on the Delta Point industrial park.
The site in Greets Green Road already has 280,000 sq ft of industrial space and is home to tenants including metal frame specialist Unistrut and builders' merchant Travis Perkins. The new unit is being built speculatively and is due to be completed by June.
The development will form part of Topland's growth ambitions within the industrial sector as the group seeks to invest in and bring forward further warehousing and logistics-ready sites in strategic locations across the UK.
This latest development at Delta Point builds on Topland's £15 million acquisition of a 190,000 sq ft distribution facility in Dartmouth Road, Smethwick, 18 months ago and its recent £8.9 million off-market purchase and leaseback of a 150,000 sq ft Gloucestershire site to consumer electronic goods distributor Domestic Appliance Distributors.
William Davies, director in the asset management team at Topland Group, said: "Delta Point's connectivity and existing network of industrial businesses make it an ideal location for speculative development so we're already seeing significant demand for the site.
"Demand for new space remains strong while supply remains severely restricted with very little new build. We are looking to capitalise on this and our ambition remains to develop assets that improve connectivity, unlock productivity and ultimately drive growth for tenants."
Chairman Sol Zakay added: "After an active 12 months within the sector, we continue to see industrial as a key market for strategic investment.
"As we head into a period of further economic uncertainty, our ability to source and develop speculative assets puts us in a strong position to ensure businesses have access to large, high-quality facilities that enable firms to grow.
"Despite the challenges next year will bring in terms of market conditions, we plan to be active in a range of sectors where activity has cooled and look forward to bringing further developments forward in 2023."
