Theale distribution depot approved

Scheme for up to 134,000 sq ft of storage at "particularly attractive" site

PLANS for a new distribution depot have been approved for West Berkshire.

McKay Securities PLC, a UK real estate investment trust, has been given the green light for its plans to develop a new distribution warehouse scheme at its existing site at Theale Logistics Park.

McKay had applied to demolish an existing 96,000 sq ft chilled storage warehouse and replace it with either a single 134,000 sq ft unit or a four-unit scheme totalling 117,000 sq ft.

The area is already an established distribution location with centres for Amazon, Bunzl, Direct Wines, IKEA and John Lewis based there.

McKay bought the property with a 6.6-per-cent yield in April 2015 and said it recognised the site’s potential for redevelopment at the right time.

The company said that the expiry of the existing lease to transport and logistics company Kuehne & Nagel in 2018 provided this opportunity.

McKay said that the scope for different configurations and strong strategic location was expected to attract a range of different occupiers, particularly online retailers and third-party logistics operators.

Chief executive of McKay Simon Perkins said: “The Thames Valley is characterised by low supply of good-quality mid-size distribution space.

“This is at a time of favourable demand dynamics, driven by the rapid growth of e-commerce and the structural changes in consumer behaviour.

“The location of Theale Business Park is particularly attractive, servicing the metropolitan hub of Reading, while also providing easy access to the rest of the UK’s wider motorway network.”

Detailed design is being progressed and either demolition or refurbishment of the existing building is programmed for spring 2018.

Savills and Haslams have been appointed as letting agents for the scheme.