MFI is to open a national distribution centre in Yorkshire this week, marking what the retailer’s private equity owners hope will be a significant step in its turnround and confirming the region’s reputation as a prime site for big distribution businesses. Financial Times
The 750,000 sq ft warehouse alongside the M18 in South Yorkshire was built by Helioslough last year with £42m of funding from CB Richard Ellis Investors. The confidence paid off when MFI agreed a £3m-a year, 10-year lease and invested £16m in fitting it out.
It is one of a number of similar huge 'supershed' developments around the M1, M62 and M18 in Yorkshire. The motorways are becoming a golden triangle for distribution and logistics to rival the obvious central location of the Midlands.
Mike Baugh, director of the national industrial and logistics team for DTZ in Leedssays that developers talk of getting an easier ride than they do in the south-east. 'Councils are supportive – they see the development and jobs that it is bringing.'