EZW’s Gazeley entrusted to develop 260,000 sq ft, build-to-suit warehouse for Butcher’s Pet Care Ltd.

Economic Zones World’s fully owned subsidiary, Gazeley, global provider of sustainable logistics space, has kick-started 2010 with a deal to develop a state-of-the-art warehouse at G. Park Crick, one of the most sought-after distribution parks in the Midlands, which will be forward funded by investment manager Legal & General Property (LGP) on behalf of its Managed Pension Fund.The warehouse will provide the Headquarters for Butcher’s Pet Care’s UK operations, as well as a manufacturing and distribution facility for the Company which currently occupies a building on another part of the site. The deal will see Butcher’s Pet Care Ltd, the leading UK family owned dog food business, take on a 20-year lease.

The 260,000 sq ft warehouse will be situated on strategically located G. Park Crick, a 95 acre site close to the M1 in the heart of the logistics ‘Golden Triangle’ which can access the majority of the country within a 4.5 hour drive time.

Bruce Topley, Development Director at Gazeley, comments, “It is fantastic to be starting 2010 on a high note with a major deal delivering a bespoke manufacturing and distribution facility in the UK. We are really pleased the Gazeley Team can offer Butcher’s the bespoke solution they require. Gazeley’s trusted record in delivering to customers the very best in, sustainable logistics warehousing within tight time frames, is key to our ongoing business success. This transaction delivers the infrastructure to release the balance of the site where we can deliver up to 1.1M sq ft in a single unit for our customers”.

Charlie Walker, Senior Fund Manager at LGP commented “We are delighted to be funding this opportunity with Gazeley, following the recent successful funding of the John Lewis distribution facility in Enfield at the end of 2009. The opportunity reflects the Managed Fund’s continuing strategy to secure investments with exceptional location, specification and income profile. Development fundings are once again offering value to investors in a stock starved market - providing the edge on yield which had all but disappeared in the bull market. Institutions can provide a natural partner in a reluctant banking environment.”

Work on the £38m project will begin on the site in April 2010 and it will be operational in 2011.

Graham Baker, Founder of Butcher’s Petcare Ltd added “We have a small but successful continental European business and believe our investment in UK manufacturing over the coming years will support a growing export business. We will produce around five million cans a week in our new facility to meet this growing demand. Butcher’s has always wanted to keep our business in the Midlands where local people have helped us to grow the company to what it is today.”

As is standard for Gazeley projects, the warehouse at G. Park Crick will be developed with sustainability at the heart of its design. It will incorporate a number of environmental measures, such as rainwater harvesting and recycling, energy efficient lighting, solar panels, low water use appliances and the use of FSC approved timber.