LSH appointed to market major development sites at Port of Southampton
Thursday March 31st, 2022
Leading property consultants, Lambert Smith Hampton and Colliers have been appointed by Associated British Ports (ABP) to bring to market 40 acres of land at the Port of Southampton. The sites are designated for around 700,000 sq ft of manufacturing or logistics development.
The land is split across two locations: the 32-acre Redbridge site – which benefits from Freeport status – and also an eight-acre site on the Marchwood Industrial Park.
The sites are part of a national initiative by ABP which will see it release more than 1,000 acres to support the UK’s supply chain, manufacturing and renewable energy sectors.
ABP’s Head of Property in Southampton, Ian Henderson, commented: “These strategic sites are capable of attracting a range of businesses to Southampton and creating new jobs.
“Redbridge is a prime development site located in the thriving Western Docks. It sits within the Solent Freeport area and will provide tax benefits for businesses which locate there.”
It has been estimated that a business leasing a 100,000 sq ft warehouse for 25 years in a freeport location could achieve tax savings of more than £4m in its first five years of occupation.
Marchwood Industrial Park is a well-established industrial site and is already home to more than 60 businesses.
Ian Henderson comments: “Like Redbridge, the Marchwood site has excellent transport links which make it an ideal base for logistics operators.”
The growth of online retailing is creating unprecedented demand for logistics space. The UK currently has the third highest e-commerce penetration ratio globally at 24% with annual online spend of approaching £100bn. The online spending ratio is forecast to rise to 32% by 2025. It is estimated that for every additional £1bn of online spend around 1m sq ft of logistics space is needed to fulfil delivery.
Dan Rawlings of Lambert Smith Hampton commented: “In a market where supply is short, it is fantastic to be working alongside Colliers and to partner up with ABP to offer up sites which can accommodate around 700,000 sq ft of manufacturing or logistics development and boast the scale and connectivity which are highly sought-after in today’s market”.
“ABP is a committed partner and has a track record of bringing sites to market which are ready to develop, and the Freeport status of the Redbridge site can offer major benefits for occupiers. In addition, Southampton’s upcoming bid for City of Culture in 2025 could also offer up wider economic benefits for the region should it be successful making it an attractive proposition for occupiers to locate themselves.”