A deal has been reached to fund the multi-million pound speculative development of a huge warehouse in Staffordshire which could create up to 500 jobs.
Aver, a joint venture between NFU Mutual and Ergo Real Estate, has agreed to fund the Novus Point project in Newcastle-under-Lyme for investment development company Cole Waterhouse, in partnership with Peveril Securities.
Outline planning permission for the scheme, which would see a 330,000 sq ft warehouse built on the former Stoke Speedway site at Lymedale Business Park, was granted in July 2020.
A reserved matters application has now been submitted and, if further consent is given, work could start on the site as early as April with completion expected before the end of the year.
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The facility is expected to support more than 130 full-time employees during construction and around 500 full-time roles once the site is in operation.
Martin Jepson, founding partner at Ergo Real Estate, said: "We are delighted to be working with investment and development company Cole Waterhouse and Peveril Securities on what promises to be an impressive scheme which adds another strategic development to our growing logistics platform."
Damian Flood, chief executive of Cole Waterhouse, said: "There is a strong appetite from institutional funds looking to invest in potentially high-yielding, long-term income producing assets, offering a secure return for their investors.
"Staffordshire acts as gateway between the north and south and, as such, is already an established distribution location with ASDA, New Look, Parcelforce and TK Maxx all based here.
"These factors made the decision to build speculatively relatively straightforward."
Ralph Jones, managing director at Peveril Securities, added: "This is a significant step forward in the development of Novus Point, made possible by the collaborative way in which all stakeholders have worked together.
"Securing Aver as a funding partner further strengthens our ability to deliver the scheme and, subject to a positive planning outcome, we look forward to building out this new facility next year."
The Novus Point project – which is an extension to the Lymedale Business Park site – is projected to generate up to £37.3 million GVA (Gross Value Added) for the local economy.
In addition to the creation of permanent jobs through the operation of the industrial units, it is anticipated that around 144 construction and 169 supply chain jobs will be supported during the two-year build programme with total investment in the region of £19.9 million.
