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News Release

Manchester

Omega Warrington LTD Announces £47.5M Funding Deal

Omega Warrington Limited


​Omega Warrington Limited (OWL), a Miller Developments joint venture partnership, has signed an agreement with LondonMetric Property Plc (LondonMetric) to forward-fund a new 690,000 sq ft retail logistics and manufacturing centre for The Hut Group (The Hut) at Omega, at junction 8 of the M62 in Warrington.

The £47.5 million deal follows the securing, by OWL, of Reserved Matters planning consent (converting outline consent to detailed) for The Hut Group, a specialist on-line retailer and brand owner, selling high repeat purchase goods direct to consumers across the Health and Beauty sectors. With the funding now in place, The Hut Group has formally signed to become Omega South's second occupier along with ASDA, providing hundreds more jobs on site. Construction of the development will begin this month with completion expected in autumn 2015.

The Hut Group's new premises on the 41 acre plot will support a mixture of functions including logistics, manufacturing and offices plus a further 150,000 sq ft of additional expansion land. The new facility will bring over 2,000 jobs to Omega South.  GVA and JLL are the letting agents for logistics and manufacturing opportunities in Zone 7.

Andrew Sutherland, joint MD for Miller Developments, said: "This transaction really puts Warrington on the map and demonstrates the willingness of investors to participate in the North West's growing logistics and manufacturing sector. We welcome The Hut to our ever-growing family of successful businesses on site and continue to work hard with our partners to maintain the momentum generated for the maximum benefit of local people."  

The new premises are being built to consolidate The Hut's four existing UK distribution units. The facility will be used to satisfy both its domestic and rapidly growing international operations.

Deborah McLaughlin, the HCA's Executive Director for the North West, said: "Securing The Hut Group at Omega is fantastic news for Warrington and the wider region. We have been transforming Omega into a major high quality employment park over the last few years, and this latest success brings yet another significant employer into the area."

The Hut's site, which now has detailed planning consent, is located within 'Zone 7' of Omega South, which was granted 'outline' planning consent in May 2014 for 2.1 milion sq ft of logistics and manufacturing space, a new access road and a 35 acre 'Green Heart' habitat creation area.

Cllr Terry O'Neill, leader of Warrington Borough Council said: "We are proud to welcome The Hut Group to Warrington and to Omega and are looking forward to working with them. In only eighteen months Omega has been transformed from an undeveloped former airbase into the North West's premier business location of choice.  It is superb that yet another high calibre business is joining the Omega family."

The Hut Group will join other thriving businesses at this major employment site including ASDA on Omega South and Brakes, Hermes and Travis Perkins on Omega North.

 

For further information on Omega:

Jo Sistern, GL Hearn, communications advisors

jo.sistern@glhearn.com

0844 225 0003

 

For further information on LondonMetric Property Plc:

Andrew Jones / Martin McGann

Tel: +44 (0) 20 7484 9000

 

FTI Consulting

Dido Laurimore/Clare Glynn

Tel: +44 (0) 20 3727 1000        

Notes to Editors:

Omega background

www.omegaopportunity.com

  • Omega Warrington Ltd (OWL) is a joint venture between Miller Developments and KUC Properties Ltd, in partnership with landowner the Homes and Communities Agency and supported by Warrington Borough Council and the Cheshire and Warrington LEP.
  • The Omega site, which is owned by the Homes and Communities Agency (HCA), is a brownfield site comprising part of the former USAF/RAF Burtonwood Airbase. The site extends to 232.62 ha (575 acres) and is situated on the northern fringe of Warrington, midway between Liverpool and Manchester. The site is intersected from east to west by the M62 motorway. Omega North extends to 52 hectares (129 acres) and Omega South extends to 181 hectares (446 acres).
  • Recent Omega South planning consent:
    • Outline planning consent was granted for 'Zone 7' in (May 2014) for 2.1m sq ft of logistics (B8) and manufacturing (B2) space, a new access road to Junction 8 of the M62 and a 35 acres 'Green Heart' for wildlife preservation.
    • Within Zone 7, a Reserved Matters consent was granted in September 2014 for c. 690,000 sq ft of logistics space for The Hut, forward funded by LondonMetric Property Plc; The Hut will become the second occupier to take space on Omega South.
    • Also in Zone 7 on Omega South, construction is well underway for a 618,000 sq ft logistics centre for ASDA.
    • Reserved Matters was also granted in November 2014 for a further 240,000 sq ft of development within Zone 7 on Omega South.  
  • Back in June 2007, outline planning permission for business space in Phases 1 and 2 of Omega was granted; this allowed for the development of 1.6 million sq ft (148,643 sq m) of logistics space on Omega North and 1.5 million sq ft (139,353 sq m) of office accommodation and supporting ancillary development at Omega South. OWL remains committed to delivering office space on Omega South, as consented in 2007, when there is market demand.
  • Omega North update:
    • In 2012 and 2013, Omega Warrington Ltd (OWL) signed deals with Brakes (200,000sq ft), Hermes (150,000 sq ft) and Travis Perkins Group (700,000 sq ft) establishing hundreds of jobs in Warrington. 
    • Brakes and Hermes are now operational and the Travis Perkins premises have just been completed. This leaves only two plots left on Omega North.
  •  The HCA has worked in close partnership with Omega Warrington Limited, the Cheshire and Warrington Local Enterprise Partnership (LEP) and the Council to secure investment for the site.
  • The Masterplan for Omega as a whole has evolved to respond to market demands but the vision remains the same: to bring forward the development as a centre of regional significance attracting business and employment on a national basis.

The Homes and Communities Agency (HCA)

The Homes and Communities Agency is the single, national housing and regeneration delivery agency for England, and is the Regulator of Social Housing Providers.  Our vision is to:

  • Create opportunity for people to live in homes they can afford in places they want to live, by enabling local authorities and communities to deliver the ambition they have for their own areas; and undertake robust economic regulation that maintains lender confidence and protects the taxpayer.

For more information visit: http://www.homesandcommunities.co.uk/newsevent or follow the HCA on Twitter @HCA_UK

 

LondonMetric Property Plc

LondonMetric (ticker: LMP) aims to deliver attractive returns for shareholders through a strategy of increasing income and improving capital values. It invests across the UK in Retail and predominantly retailer led Distribution properties. It employs an occupier-led approach to property investments through opportunistic acquisitions, joint ventures, active asset management and short cycle developments. The asset focus is on properties with enduring occupier appeal providing opportunities to improve both rental values and the security and longevity of income; and limited risk redevelopments with the aim of enhancing shareholder returns.

Further information on LondonMetric is available at www.londonmetric.com

 

The Hut Group

About The Hut Group

The Hut Group is a specialist on-line retailer and brand owner, selling high repeat purchase goods direct to consumers across the Health and Beauty sectors specifically sports nutrition and vitamins; cycling and endurance; prestige hair and skin care; weight management; prestige clothing, footwear and accessories.  In June 2011, the Group launched a new division (Technology Services), focused on the provision of business to business software and ecommerce platform services with media and brand partners.

The Hut Group launched its first website in 2004 and focuses on product categories which share specific defining product characteristics: non-perishable, high repeat purchase, one-man delivery and low levels of customer returned products. The Group now operates individually branded websites including:

The Group's proprietary technology platform is central to the business model, facilitating highly effective data-driven retailing through optimised website content and bespoke marketing content, generating high levels of consumer loyalty, choice, repeat purchase and satisfaction.

For further information, please visit www.thehutgroup.com