Experts aim to attract £25m business at Wolverhampton's i54

Halesowen-based A & J Mucklow has been called in by council chiefs to develop and sell the last remaining vacant plots of land on site, beside the M54, which is jointly owned by Wolverhampton council, South Staffordshire Council and Staffordshire Council.

Company chairman Rupert Mucklow said the deal involved 15 acres next to the JLR factory and the site could be worth up to £25 million once work is completed.

He said his firm would be working with the existing property agents for the site, Bulleys, but would be acting as a developer to attract companies to move on to the i54.

Mr Mucklow said: "We won't be involved in speculative development. We will hope to attract companies looking for high quality industrial space, something bespoke, and working with them to develop buildings that fit their needs."

He said a lack of industrial development over the past 15 years mean there was now a shortage of top quality industrial space in the region. The i54 site, he said, would be ideal to attract a company currently in ageing premises looking to move to somewhere more modern.

The site would be able to house up to 260,000 sq ft of industrial development, he said, and Mucklow would aim to complete the project in the next three years.

He added: "It is a superb site, with its direct link to the M54 motorway. We think it is going to prove very attractive."

Alongside the 1m sq ft JLR engine factory – and its upcoming expansion - i54 is currently home to aerospace manufacturer Moog, testing firm Eurofins and stamp printer ISP, all of which moved from existing bases in the Black Country to purpose-built new facilities on the development site, which sites on the border of Wolverhampton and South Staffordshire.

It is also close to the former Freshway Foods plant at the site.

Mucklow unveiled the i54 project alongside a second scheme, at Mucklow Business Park in Tyseley, where Birmingham City Council just been given planning permission and funding for a new link road which will run alongside Mucklow's 20 acre industrial site.

"We intend to start actively marketing this site once we have confirmation on timing for the construction of the road," said Mr Mucklow.

"In total, the two development sites could accommodate over 600,000 sq ft of new industrial space; generate in excess of £3.6m per anum of rental income and have an end value of around £60m when fully developed."

The announcement came in a trading statement at the company's annual shareholders' meeting. Mr Mucklow told investors: "The Midlands industrial property market has continued to flourish during the first four months of our financial year and the board remains positive about prospects for the full year."

Strong demand and a falling amount of available industrial space was pushing up rents, he said.

The amount of vacant space across Mucklow's 3.8m sq ft of properties has fallen from 5.4% to 4.7% since June - its lowest level on record.

While it is proving more difficult to buy "sensibly price" investment sites, Mr Mucklow said the firm had bought a 19,200 sq ft retail warehouse in Leicester city centre for £2.8m, with 80 car parking spaces.

And he said the group remained in good financial health, with borrowings of £54.7m against a property portfolio currently worth £350 million.