Slough Estates' newly established Midlands office has bought a 10.5-acre site in Argyle Street, Aston, Birmingham, as part of a £20 million redevelopment programme.
The scheme will see around 235,000 sq ft of high specification industrial buildings and warehouses being built on the site, currently home to a former manufacturing complex.
The purchase of the former manufacturing site from engineering firm Delta is the first acquisition made by Slough Estates' Midlands office following a change to a regionalised structure for the UK business.
It is anticipated that the introduction of an office for the Midlands area will allow the company to take a more regional focus and be more reactive to local market conditions.
The deal represents one of the most significant land releases in Birmingham this year due to its size and the lack of similar well-located sites with development potential in Birmingham. Bidding for the land was very competitive and included offers from a number of major companies interested in its potential for redevelopment.
Slough Estates clinched the deal on price and an undertaking to perform to tight time constraints.
The company is planning to develop speculatively approximately 235,000 sq ft of flexible industrial and warehousing space at the site, which occupies a prime location close to Spaghetti Junction and the Heartlands Spine Road.
All stages of the project are being dealt with by Slough Estates Midlands' office, which is due to make a planning application by the end of September and will manage all aspects of the construction project. Completion of the £20 million industrial park is due in 2006 and will bring a variety of new businesses to the area attracted by the site's strategic location and the flexibility of the planned accommodation. Units will be available from 20,000 sq ft to 115,000 sq ft.
Kevin O'Connor, Slough Estates' regional director for the Midlands, said: "The land's redevelopment potential and prime location meant that interest in the site was high.
"We secured the deal after beating 15 other bids, reflecting our commitment to developing 235,000 sq ft of flexible industrial and warehousing workspace in a key Birmingham location.
"This land purchase is the first acquisition made by the Midlands' regional office since the introduction of a regional structure across Slough Estates' UK business and we are currently looking at a number of other opportunities in Birmingham and the Midlands area as a whole to expand within the region.
"The new office will allow us to take a regional focus and be more in touch with developments and trends in the Midlands market."
Simon Lloyd, DTZ's industrial agency director in Birmingham, added: "This purchase represents the start of a major redevelopment of the site, close to leisure and entertainment complex, Star City, and will bring a significant boost to the local employment market."
DTZ represented Delta; Slough Estates was advised by Jones Lang Lasalle.