£22m loan helps deliver Wolverhampton logistics site off M54

The £60 million scheme involves two warehouses, with a combined floor space of 380,000 sq ft, located next to junction 2 of the M54 at Wolverhampton.

The larger of the two – a 200,000 sq ft facility – has been purpose-built on land bordering the Marston Aerospace factory for PJH Group, a supplier of bathrooms, appliances, sinks and taps, to use as a major distribution centre.

Set to be known as PIN54 in Wobaston Road, the site is expected to bring 144 construction roles during the build and, when PJH relocates, nearly 150 jobs from its current base in Cannock.

Specialist property experts Together, a lender with a £7bn loan book, provided a development finance facility of £22m, allowing construction work to progress at the long-disused brownfield site.

Philip Meakin, director of PIN Properties, the agent acting on behalf of the borrowers, said construction teams had already started building work, with the first state-of-the-art warehouse to be completed in the autumn.

The construction of the remaining 180,000 sq ft unit is set to be finished by the end of the year.

Mr Meakin said: “The industrial sector has been the darling of the commercial property market over the past two to three years, with online shopping reaching a peak during lockdowns. It is a trend that has continued post-Covid, and we are seeing demand from investors for this type of high-spec, as the UK economy begins to grow.

“Together’s funding has brought forward the bespoke development of a logistics hub at prime location in the West Midlands. This is a major project that has been in the planning for a long time and has excellent road connections to the M54 and great public transport links, with regular trains to Wolverhampton and Birmingham International Airport less than 30 miles away.”

Marc Goldberg, chief executive of sales and distribution at Together, said: “PIN Property is well-known and highly respected experts in commercial property. We have wanted to work with them as a client for 20 years, so we’re delighted to be able to be their funding partner on this exciting new development.

“The site has been long-term vacant and a brownfield in an area designated by local and national planners as key for supporting economic growth.

“Both units are built to the highest level of sustainability and include electric vehicle (EV) charging spaces, landscaping and features designed to promote cycling and walking.

“Once operational, it will have a huge benefit to the regional economy, so we’re delighted that our finance is creating such a sustainable manufacturing and logistics centre, supporting jobs and continued prosperity in the West Midlands.”

Michael Slattery, Together’s relationship manager for development funding, who is based in the Midlands, is managing the progress of the scheme.

Richard George, chief executive of PJH, said: “Securing this new site marks a major milestone for PJH, showcasing our dedication to becoming the preferred choice for our customers as we continue our growth journey. This state-of-the-art, bespoke PJH Distribution Centre will set the standard for our operations and enhance our FIRST CHOICE service yet further. As we are re-locating, ensuring we stayed in the local area was crucial to retaining our valuable employees, so I am pleased we found this ideal location in Wolverhampton, just eight miles from our existing site.”