London (31st July, 2024) - Sizewell C has agreed the lease of Orwell Logistics Park (OLP) in Ipswich, owned by BGO, representing one of the largest letting transactions in the UK.
After securing its Nuclear Site Licence earlier this year, and with work progressing on site, this latest transaction is a significant milestone that will play a crucial role in supporting the supply chain requirements for the construction of the power station.
The new site, conveniently located for the project on the A14 between Ipswich and the Port of Felixstowe, will provide Sizewell C with just over 1m square feet of space. It will mean the project can store and access key equipment, local to the Sizewell C site, creating significant efficiencies during the construction period.
Orwell Logistics Park will also be the new location for Sizewell C’s Freight Management Facility (FMF), which will ensure a controlled pattern of deliveries to Sizewell C, enabling reduced movements during peak or sensitive hours. Sizewell C had previously earmarked a site at Levington, to the south-east of Ipswich, for its FMF, but after local consultation and with the preferred location available, the facility will now be based at OLP.
Sizewell C will occupy two completed units on the site, as well as agreeing to pre-let the remaining units and open storage plot.
Nigel Cann, Sizewell C Joint Managing Director, said: “After starting formal construction this year, this is yet another big step forward for Sizewell C. Orwell Logistics Park is an excellent solution for our logistics and freight management – and it will be a crucial location for us as we begin the gradual ramp-up to peak construction over the next five years whilst showing due consideration to our host communities.”
Orwell Logistics Park, acquired by BGO with development partner, Equation Properties, in December 2020, is a new industrial/distribution development strategically located on the A14 between Ipswich and the Port of Felixstowe, one of the UK’s largest deepwater ports which accounts for almost 50% of all containerised trade in the country. The site spans a total of 60 acres with a total floor area of just under 1.1m sq. ft.
Gareth Purcell, Managing Partner at BGO, said: “We are thrilled to welcome Sizewell C to Orwell Logistics Park and support the supply chain for this critical piece of national energy infrastructure. This major letting demonstrates the continued delivery across our Grade-A, UK logistics platform.”
Richard Batham-Read, Managing Director at Equation Properties, said: “The commitment from Sizewell C is a major validation for the vision we have had for this project, underpinning our belief in the location representing a great opportunity to capitalise on the strategic highway network and occupational requirements emanating from Port activities.”
Notes
The recently completed Phase 1 of Orwell Logistics Park was speculatively developed and comprises units of 301,214 sq. ft and 256,255 sq. ft. The to-be-developed units consist of two additional buildings of 500,000 sq. ft and 25,335 sq. ft respectively, along with 5.34 acres of open storage. Sizewell C will take immediate occupation of Phase 1 in Q3 2024. Construction of Phase 2 will be completed in Summer 2025.
Sizewell C is a new 3.2GW nuclear power station being built on the Suffolk coast.
A once in a generation opportunity for East Suffolk, Sizewell C is creating thousands of new jobs, apprenticeships, and training opportunities for the region. It has allocated £250m in local funding, and once operational it is expected to contribute £40m a year to the local economy and employ 900 people in high-skilled, well-paid jobs.
A key part of the clean energy transition, Sizewell C will provide low-carbon electricity to six million homes for at least 60 years and will save nine million tonnes of carbon dioxide from entering the atmosphere each year. It will boost the local environment, too, with environmental projects expected to increase local biodiversity by 19%.
The Sizewell C Information Office is open five days a week to answer community questions, the project runs regular forums to enable local people to continue to have a say during the construction period, and info on the latest works can be found on the Sizewell C Works Tracker.
Find out more at sizewellc.com
BGO is a leading, global real estate investment management advisor and a globally-recognized provider of real estate services. BGO serves the interests of more than 750 institutional clients with approximately $82 billion USD of assets under management (as of March 31, 2024) and expertise in the asset management of office, industrial, multi-residential, retail and hospitality property across the globe. BGO has offices in 27 cities across thirteen countries with deep, local knowledge, experience, and extensive networks in the regions where we invest in and manage real estate assets on behalf of our clients in primary, secondary and co-investment markets. BGO is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life.
In Europe, BGO is a leading investment manager with over 50 professionals and $10.5 billion USD in AUM across debt and equity, with strategies spanning from Core to Value-Add and Development, with its own internalised operating capability. Since 2014, the firm has acquired, developed or is currently developing over 200 European logistics assets comprising over 66 million square feet (6.1m sq. m.)
The assets under management shown above includes real estate equity and mortgage investments managed by the BGO group of companies and their affiliates, and as of 1Q21, includes certain uncalled capital commitments for discretionary capital until they are legally expired and excludes certain uncalled capital commitments where the investor has complete discretion over investment.
For more information, please visit www.bgo.com
Established in 2014, Equation Properties is a versatile property development and investment company, focused primarily on development in the distribution and industrial sector. Since inception, Equation has delivered over 1.6m sq. ft of industrial/logistics developments. As of January 2022, Equation Properties has 5.94m sq. ft within its active portfolio with an accumulative value of £1.04bn.
For more information, please visit www.equationproperties.com