A 356,000 sq ft speculative warehouse is to be built at Omega Warrington, thanks to a £30m funding deal.
The news comes just over a month after SHD Logistics exclusively reported that Omega’s developers were seeking funding for a new scheme. Omega Warrington Ltd denied the suggestion at the time.
LondonMetric Property plc will forward-fund the building on the Omega South site. This is the investor’s second Omega deal. In 2014 they provided £47.5m to fund the Hut Group’s 690,000 sq ft warehouse.
The latest development will be on a 19 acre site at Zone 7, which one planning permission in 2014. The development site now being purchased by LondonMetric is to the south of the new ASDA building, located in-between the new Plastic Omnium premises to the west and the 35 acres Green Heart to the east.
The deal with LondonMetric assumes the rent on the new 356,000 sq ft warehouse will be £2.2m a year.
It is expected that a decision on the Reserved Matters planning application for this plot will be made by Warrington Borough Council over the next couple of months. Pending a positive planning decision, it is anticipated that construction on the LondonMetric warehouse would then commence in March 2016, with completion in December 2016.
Omega Warrington Ltd is a joint venture between Miller Developments and KUC Properties Ltd, in partnership with landowner the Homes and Communities Agency and supported by Warrington Borough Council and the Cheshire and Warrington LEP.