£72m forward funding agreement confirmed for 353,000 sq ft of new industrial space at Eurocentral
Global real estate advisor CBRE has brokered a £72m pre-construction forward funding commitment between a US based investor and Newlands Developments, in association with Tulchan Development, enabling the speculative delivery of much-needed industrial and logistics development in Central Scotland.
The commitment represents the largest speculative forward funding deal for an industrial and logistics project in Scotland for 30 years.
The investment will unlock the speculative delivery of Orchard Park, a 40-acre industrial and logistics development at Eurocentral, Scotland’s flagship logistics hub. The development will deliver 353,000 sq ft of new Grade A accommodation across five units ranging from 42,500 sq ft to 122,500 sq ft, with bespoke design options also available to suit occupier requirements. Development is scheduled to commence on site in Q1 2027 with practical completion targeted for Q2 2028.
Occupying a strategic position within the Eurocentral estate, Orchard Park benefits from direct access to the M8 motorway via a dedicated junction, providing connectivity to the national motorway network, while Scotland’s two principal airports are both within a 30-minute drive of the development.
Existing occupiers within Eurocentral span the distribution, logistics and office sectors, including DHL and GXO Logistics.
The investment decision is underpinned by sustained occupier demand across Scotland’s industrial sector, particularly within the Central Belt and along the M8 corridor, where vacancy rates remain exceptionally low at approximately 2.5%.
Bryce Stewart, senior director at CBRE and Iain Davidson, director at Colliers, are the retained letting agents on the scheme.
Stephanie Bishop, development director at Newlands Developments, commented: “This is a significant milestone for Scotland’s industrial and logistics market and a strong vote of confidence in the sector from one of the world’s leading real estate investors. We are delighted to be investing in Scotland again alongside our Glasgow-based delivery partner, Tulchan Developments.
“We believe this investment will attract significant occupiers who require top quality buildings available in the immediate future. It will reinforce Scotland’s position as an increasingly important destination for industrial and logistics investment.”
Douglas Steele, associate director at CBRE, said: “We are very pleased have brokered a transaction of this scale and significance, bringing a much-needed injection of capital into Scotland’s industrial and logistics sector.”
“The deal reflects the growing international recognition of the opportunities within the country’s I&L sector. Orchard Park will be central in building that momentum, delivering high-quality, strategically located space that can help address occupier demand and set a new benchmark for industrial development in Scotland.”