Wolverhampton site part of £60m development for Mucklow

West Midlands industrial property group A & J Mucklow is gearing up for two new developments, in Wolverhampton and Birmingham, worth up to £60 million, it revealed today.

At the same time the company, holding its annual shareholders' meeting this morning, will reveal that its industrial estates are filling up and rents are rising.

Ruper Mucklow, chairman of the Halesowen-based company, said Mucklow has recently entered into a option agreement with Wolverhampton and Staffordshire councils to promote and develop a 15 acre industrial site adjacent to the Jaguar Land Rover engine plant on the i54 site.

"The land is immediately available for development and marketing will commence shortly," said Mr Mucklow.

The company is also making progress on Mucklow Business Park in Tyseley, where Birmingham City Council has now received planning permission and funding for a new link road which will run alongside Mucklow's 20 acre industrial site.

"We intend to start actively marketing this site once we have confirmation on timing for the construction of the road," said Mr Mucklow.

"In total, the two development sites could accommodate over 600,000 sq ft of new industrial space; generate in excess of £3.6m per anum of rental income and have an end value of around £60m when fully developed."

Meanwhile, looking back at its trading since the start of July, Mr Mucklow said: "The Midlands industrial property market has continued to flourish during the first four months of our financial year and the board remains positive about prospects for the full year."

Strong demand and a falling amount of available industrial space was pushing up rents, he said.

The amount of vacant space across Mucklow's 3.8m sq ft of properties has fallen from 5.4% to 4.7% since June - its lowest level on record.

While it is proving more difficult to buy "sensibly price" investment sites, Mr Mucklow said the firm had bought a 19,200 sq ft retail warehouse in Leicester city centre for £2.8m, with 80 car parking spaces.

And he said the group remained in good financial health, with borrowings of £54.7m against a property portfolio currently worth £350 million.