Floor coverings distributor Headlam Group has agreed a deal with UK Land Estates on a new state-of-the-art 65,000 sq ft regional distribution centre (RDC) at the Team Valley business estate in the North East of England.
Headlam intends to move staff working out of two existing sites in Newcastle and LGS into the new Centralway 65 facility, which will feature a new enlarged trade counter.
David Gibbs, property director at UK Land Estates, said: “We are delighted that Headlam Group is continuing to invest in Team Valley. While speculative development inevitably carries risk, our confidence was underpinned by the clear and persistent imbalance between supply and demand for high quality industrial and warehousing space across the region. This transaction reinforces that conviction and highlights the depth of occupier demand we continue to see.
“The letting has enabled one of the UK’s leading flooring distributors to strengthen its regional footprint, and it also demonstrates the importance of bringing forward well-located, high-specification space in a constrained market. We look forward to working closely with the Headlam team as they continue to increase their presence across the North of England.”
Rob Barclay, CEO of Headlam Group, added: “We are laser focused on rebuilding our base of core independent retailers and contractors, the customers on which the strength of this business depends. Bringing two of our teams together at our new, modern distribution facility in the North East is the latest step in our journey to create a simpler, more effective business that is better aligned to these customers.
“It will help us bring our teams together into one location, creating a stronger and more connected operation that better supports our customers and our future growth. Our team are already hard at work getting the site ready and we look forward to welcoming our customers from across the North of England in the summer months ahead.”
Keith Stewart, partner at Naylors, which acted on behalf of UK Land Estates, said: “We received strong interest in Centralway 65, including from two other high-profile occupiers, which underlines the quality of the building and the strength of demand for prime industrial space in the region. For Headlam, this was the right building at the right time as the business continues to invest in and future-proof its operational facilities.”
