UK Coal has selected Gazeley to develop a 1m sq ft distribution hub on a former colliery in Nottinghamshire.
Start your free trial today
Your trusted daily source of commercial real estate news and analysis. Register now for unlimited digital access throughout April.
Including:
- Breaking news, interviews and market updates
- Expert legal commentary, market trends and case law
- In-depth reports and data-led analysis
UK Coal has selected Gazeley to develop a 1m sq ft distribution hub on a former colliery in Nottinghamshire.
Gazeley, which is already developing a 1m sq ft shed with UK Coal on a site in Ashby de la Zouch, Leicestershire, beat ProLogis, Goodman and Segro to the 85-acre opportunity.
The land forms part of UK Coal’s 147-acre site in Bennerley, 10 miles outside Nottingham.
It is one of a number of former collieries that UK Coal’s property arm, Harworth Estates, is bringing forward for development.
The group wants to more than double the value of its property portfolio to £1bn by 2013, and will release some 60 sites, totalling 2,650 acres of development land, during the period.
Jon Lloyd, chief executive of UK Coal, said that the joint venture would work up plans for Bennerley with the aim of lodging them by 2009.
It is also working up plans to build 2,000 homes on a site in Telford, Shropshire.
“Clearly, now is a difficult time for the UK property market, but we very much doubt the situation will be the same in a year’s time,” he said.
“Since 1977, the downturns have been more shortlived and quicker to rebound. I call it a reverse bungee.”
Pretax profit at UK Coal almost quadrupled in the year ended 31 December 2007, to £69m.
It was boosted by a 21% increase in the value of UK Coal’s portfolio, from £344m in 2006 to £411m.
paul.norman@rbi.co.uk
