The largest speculative forward funding deal for an industrial and logistics project in Scotland for 30 years has been unveiled.
A £72 million pre-construction commitment has been agreed to unlock the delivery of Orchard Park, a 40-acre industrial and logistics development at the vast Eurocentral site, located next to the M8 motorway, between Glasgow and Edinburgh.
The speculative development will deliver more than 350,000 square feet of new Grade A accommodation across five units ranging from 42,500 sq ft to 122,500 sq ft, with bespoke design options also available to suit occupier requirements. Development is scheduled to commence on site in the first quarter of 2027 with practical completion targeted for the second quarter of 2028.
Property advisor CBRE has brokered the forward funding commitment between a US-based investor and Newlands Developments, in association with Tulchan Development. Bryce Stewart, senior director at CBRE and Iain Davidson, a director at Colliers, are the retained letting agents on the scheme.
Stephanie Bishop, development director at Newlands Developments, said: “This is a significant milestone for Scotland’s industrial and logistics market and a strong vote of confidence in the sector from one of the world’s leading real estate investors.
“We believe this investment will attract significant occupiers who require top quality buildings available in the immediate future. It will reinforce Scotland’s position as an increasingly important destination for industrial and logistics investment.”
Douglas Steele, associate director at CBRE, said: “We are very pleased to have brokered a transaction of this scale and significance, bringing a much-needed injection of capital into Scotland’s industrial and logistics sector.
“The deal reflects the growing international recognition of the opportunities within the country’s industrial and logistics sector. Orchard Park will be central in building that momentum, delivering high-quality, strategically located space that can help address occupier demand and set a new benchmark for industrial development in Scotland.”
The investment decision is underpinned by sustained occupier demand across the country’s industrial sector, particularly within the Central Belt and along the M8 corridor, where vacancy rates are said to be “exceptionally low” at approximately 2.5 per cent.
Green light for massive 200,000 sq ft development at key Central Belt location
Read the Article Here: https://www.scotsman.com/business/largest-deal-of-its-kind-in-scotland-in-30-years-will-add-350000-square-feet-at-eurocentral-next-to-m8-9088478
