Doncaster Local Plan Examination Mr Don Parkinson, Mr Kim Parkinson and Wilton (Thorne) Ltd (ID 05293) Matter 8 Statement – Economic Development

Issued September 2020

1.1 This Hearing Statement has been prepared on behalf of Mr Donald Parkinson, Mr Kim Parkinson and Wilton (Thorne) Ltd (ID 05293). The Statement responds to Questions Q8.1A, Q8.4, Q8.5 and Q8.7 only.

1.2 Donald and Kim Parkinson are the majority landowners of draft employment allocation 001: J6 M18, Thorne North and Wilton (Thorne) Ltd are their development partner. Wilton (Thorne) Ltd is part of Wilton Developments Ltd, who has a long established track record of delivering employment sites in the region.

1.3 The Thorne North site comprises 73.63ha of land and is located off Selby Road to the north west of Thorne, to the west of the M18 and to the north of M18 Junction 6.

1.4 The site also is the subject of a pending outline planning application (ref. 16/02136/OUTM) for the development of employment uses. A comprehensive suite of updated plans and documents was submitted to DMBC in April 2020. This information is currently undergoing assessment and the application remains before DMBC for consideration. Key elements of this application are referred to below.

Matter 8: Economic Development

Q8.1A: Do policies 4 or 5, or associated reasoned justification, need to be modified to reflect the changes to the Use Classes Order that will come into effect on 1 September 2020?

1.5 In light of the changes to the Use Classes Order as introduced by the Town and Country Planning (Use Classes) (Amendment) (England) Regulations 2020, it is considered that references to Use Class B1 b/c within Policy 4 and paragraphs 4.62 and 4.63 of the associated reasoned justification will need to be deleted or amended to reflect that Use Class B1 will no longer exist once the transitional arrangements end.

1.6 It is suggested that Part A of Policy 4 is therefore amended to provide a more descriptive nature of the types of employment uses which are deemed acceptable in such locations. It should be amended to state:

“ A) Only research and development, light industrial, general industrial and storage and distribution uses will be permitted on these sites unless the proposal is ancillary to the employment use.”

1.7 Such uses could then be secured by way of appropriately worded planning conditions / legal agreements on any subsequent planning permissions granted on these allocated sites.

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1.8 In its current form, the Local Plan is not prescriptive about particular employment uses and the draft employment allocations, Policy 4 text and associated reasoned justification relate to all existing employment use classes (i.e. B1, B2 and B8). The proposed amendments will still provide flexibility for a range of employment uses to come forward on the proposed allocations to reflect market demand in line with the current approach.

1.9 Further, in respect of Site 001: Thorne North, it should be recognised that the current planning application (ref: 16/02136/OUTM) specifies its proposed uses as B1c, B2 and B8 within its description of development. As an application submitted prior to 1st September 2020, it will still be subject to those uses once determined and therefore capable of being appropriately controlled as such. Article 4 of the Town and Country Planning (Use Classes) (Amendment) (England) Regulations 2020 states that “ where a relevant planning application was submitted, or was deemed to be submitted, to the local planning authority which referred to uses or use classes which applied in relation to England and were specified in the Schedule to the Use Classes Order on 31st August 2020, that application must be determined by reference to those uses or use classes.”

1.10 No comments are made in respect of policy 5.

Question 8.4: Are each of the employment allocations without planning permission listed in Table 4 suitably located and likely to be developed during the Plan period as assumed in the Plan?

• Thorne North, M18 junction 6 (001) 1.11 The comments below relate to employment allocation 001: J6, M18, Thorne North. This employment allocation is suitably located and will deliver economic development during the plan period as assumed in the Plan for the reasons set out below. Appended to this submission are the following: 1 Site Overview and Market Demand Reports (prepared by Commercial Property Partners (‘CPP’), prepared 25th September 2019 and 2nd April 2020) 2 Parameter Plan, Indicative Masterplan and Phasing Plan accompanying the planning application 3 Flood Risk and Drainage Statement (JPG - September 2020) 4 Letter from Highways England – dated 15th September 2020 5 Letter from the Environment Agency – dated 8th September 2020

Availability

1.12 The site is available for immediate development.

1.13 The site falls within the ownership of three parties, all of whom actively support the proposed allocation and future development of the site. All landowners have appointed Wilton (Thorne) Ltd (“Wilton”) as their development partner to bring the site forward for development in accordance with the proposed allocation. Wilton (Thorne) Ltd is a subsidiary of Wilton Developments Ltd and comprises a reputable delivery partner with a long established track record in the delivery of large-scale employment sites within the region. Wilton is committed to bringing forward development of the site at the earliest opportunity.

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1.14 On this basis, the entirety of the draft employment allocation is immediately available for development in order to deliver Doncaster’s objectively assessed needs for employment land, and there are no ownership issues which would prevent development of the site.

Suitability

1.15 The site is suitable for the development of the range of employment uses as proposed by the draft employment allocation. The pending outline planning application proposes up to 349,650 sqm (GEA) of employment development consisting of light industrial (Use Class B1c), general industry (Use Class B2) and storage and distribution (Use Class B2) uses and associated service roads, car parking, landscaping and pedestrian and cycleways. All matters are reserved other than vehicular access into the site.

1.16 The pending outline planning application is supported by advice from CPP a local agent who is particularly active in the industrial and logistics sector across the Yorkshire region (see Appendix 1). This confirms that there is demand for the type and scale of development proposed. It identifies that the site provides a number of significant and site-specific advantages, specifically its level nature and its direct access to and visibility from the M18. The site is also well located relative to the strategic road network in the “triangle” of the M18/M62/A1, all of which give tachograph single trip access to approximately 80% of the UK population. These factors will help to ensure the timely delivery of the draft employment allocation and the associated investment, job creation and regeneration.

1.17 The development of the site for employment uses comprises sustainable development in social, economic and environmental terms, and will deliver a number of significant and site-specific benefits. The site is a sustainable location for a major employment allocation, being located adjacent, and with direct access to the strategic motorway network. It is accessible by a range of transport means, provides opportunities for sustainable travel and has good access to a local and regional workforce. The development of the site will also widen access to learning and training opportunities.

1.18 The Transport Statement, Framework Travel Plan and Environmental Statement which support the outline planning application also propose further new sustainable transport measures, including a pedestrian footway and crossing to the northern side of the Junction 6 roundabout, new uncontrolled pedestrian crossings across the southern exist and northbound entry slip roads and Paddock Lane. A pedestrian access point will also be provided in the south west corner of the site. A commitment is made to providing enhanced public transport connections to the site through implementation of the proposed Framework Travel Plan.

1.19 In the context of the above, development of the site will stimulate employment opportunities and regeneration in the Thorne area of the District as identified by the Local Plan.

1.20 An illustrative masterplan reflecting a wider development parameters plan has been prepared for the site as part of the pending outline planning application (Appendix 2). This shows how a mix of different employment uses of a range of sizes in accordance with the requirements of Policy 4 can be appropriately accommodated on the full extent of the allocation alongside known site constraints and required mitigation measures.

1.21 There are no technical constraints that would prevent the site coming forward for development.

1.22 As referred to above, a significant amount of technical assessment work has been undertaken as part of the current planning application on the site (including the production of an

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Environmental Impact Assessment). Considerable progress has been made in agreeing all technical and environmental issues with DMBC and other relevant statutory consultees.

1.23 In terms of flood risk and drainage matters, the application is supported by an updated Flood Risk and Drainage Assessment, dated September 2020 which has been formulated in consultation with the Environment Agency. This is contained at Appendix 3. The Assessment takes account of the most up to date flood modelling for this part of the River Don as agreed with the Environment Agency. It concludes that flood risk from the River Don in the vicinity of the site is dominated by fluvial events and although the site is located in Flood Zone 3, it benefits from extensive Environment Agency maintained defences on the River Don (unlike other locations around Thorne), which provide protection from flooding for the 1 % Annual Exceedance Probability (AEP) event including climate change. Furthermore, the site was not subject to flooding as a result of the November 2019 event, which was estimated by the Environment Agency to have been an AEP of between 0.4% and 0.7%, i.e. between 150 and 250 year ‘return period’. Given the standard of protection provided by the Environment Agency defences, it further concludes that the actual risk to the site from the 1% AEP event including climate change is low. Notwithstanding this level of risk, it proposes a series of mitigation measures which take account of a modelled breach of the defences, including the provision of a Flood Management and Evacuation Plan, signing up to the Environment Agency flood warning service and also setting minimum floor levels for buildings.

1.24 All of the above has been formulated in consultation with the Environment Agency and they have confirmed their agreement with the proposed mitigation measures, subject to planning conditions, in a letter dated 8th September 2020 and enclosed at Appendix 5.

1.25 With regard to the ability for the site to be accommodated on the highway network, the Transport Assessment submitted in support of the planning application concludes that the existing highway network would satisfactorily be able to accommodate the predicted development traffic. The development will also be accessible by sustainable modes of transport and specific improvements are proposed to existing footway infrastructure and public transport connections to the site will be provided through implementation of a Framework Travel Plan. Highways England has further confirmed by way of a letter dated 15th September 2020 (Appendix 4) that they do not object to the proposals and confirm that they are in dialogue with our clients and Doncaster MBC to agree the wording of any planning conditions needed to secure any necessary mitigation measures to the Strategic Road Network.

1.26 There are a number of other detailed matters that are relevant to the Development Management process which will be dealt with through the application of Local Plan polices when the application is determined. These include landscape and visual impacts, ground conditions, Habitat Regulation Assessment, ecological assessment, land quality, air quality and heritage. None of these detailed matters pose a constraint to development.

1.27 Overall, draft employment allocation 001: J6, M18, Thorne North is suitable for the development of a broad range of employment uses within the plan period in line with the proposed allocation.

Achievability

1.28 The site is straightforward to develop. There are no technical difficulties which would make development of the site excessively expensive, and no significant abnormal costs which would impact on the viability or deliverability of the proposals; this includes creating the required

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finished floor levels to meet the requirements of the Environment Agency. The absence of any major upfront infrastructure costs prevents any potential uncertainty or delay to delivery.

1.29 The site is attractive to commercial occupiers and, importantly, can accommodate a wide range of market requirements, including those for increasingly large floorplates and cross-docked facilities, as well as UK-wide footloose requirements.

1.30 A Delivery Statement was submitted in support of the proposed allocation in earlier representations at Publication Draft (Regulation 19) stage. This confirms that the site is sufficiently served by existing utilities infrastructure, or these can be reinforced, in order to serve the development with power, telecommunications and other services.

Deliverability

1.31 The entirety of the site is immediately available for development and there are no ownership issues which would prevent its development. The three land owners are supportive of the proposed allocation and future development of the site by Wilton.

1.32 Wilton comprises a reputable developer with a track record in the delivery of large-scale employment developments in the region.

1.33 There are no major upfront infrastructure costs associated with development of the site for employment uses, such as the requirement for a major new access junction or significant service upgrades, which could delay or otherwise preclude delivery of the site. Similarly, Wilton is not reliant upon third parties undertaking such works which could result in uncertainty over delivery and/or potential delays.

Timescales for Delivery

1.34 The site is subject to a live outline planning application and is likely to be determined upon conclusion of the Local Plan examination process.

1.35 Given the commercial attraction of the site, Wilton expects to proceed with detailed proposals for a first phase of development within a period of six to 12 months of obtaining outline planning permission. Wilton has appointed a full design team with an extensive track record in delivering manufacturing and logistics. Detailed design work has commenced on a first phase, including the roundabout and incoming services, and this will facilitate an early first application for Reserved Matters Approval. Whilst the phasing of development will be dependent upon the exact nature of occupier interest, an indicative phasing plan has been submitted with the outline planning application and anticipates the delivery of the main access into the site within such a first phase, which would then open up the remainder of the site to development in subsequent phases. The phasing plan is appended to this statement (Appendix 2).

1.36 Whilst subject to specific occupier interest and future market interest, based on the current indicative masterplan, it is anticipated that the site will be developed over an approximate 10 – 15 year period, with the majority, if not all, of the site developed out during the plan period. There is confidence that at least 51.54 hectares of the draft employment allocation can be delivered during the plan period as set out in Policy 4.

1.37 Overall, draft employment allocation 001: J6, M18, Thorne North is available for immediate development; is suitable for the development of employment uses as proposed by the allocation; and comprises a viable development site for which there is evident commercial interest and

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market demand. The development of employment uses on the site is deliverable within the plan period in line with its employment allocation proposed by the Doncaster Local Plan.

Question 8.5: Collectively, will the employment allocations and employment policy areas be sufficient to meet anticipated development needs over the Plan period and provide enough flexibility to accommodate needs not anticipated?

1.38 The requirement for at least 481 hectares of employment land within the Borough over the plan period is an appropriate target and is derived from current and future market demand and need in the logistics and storage and distribution sector. Our position on this matter is set out in full in our separate Statement in respect of Matter 2.

1.39 Site 001: Thorne North will play an integral role in accommodating this identified need. The site will provide flexibility to accommodate a range of employment needs subject to market demand. The allocation also provides a large scale site which can accommodate requirements of a regional/national nature (potentially generating significant inward investment opportunities) accessible to the local population of the Main Town of Thorne and Moorends and its associated population/workforce, whilst also comprising a well located site with excellent access to the strategic road network and in a location that is attractive to the market. As demonstrated in the above answer to question 8.4, the site is available, suitable, achievable and deliverable within the plan period to meet the identified need.

1.40 No further comments are made in relation to this question at this stage.

Question 8.7: Are the site specific requirements for employment allocations set out in Appendix 2 justified? Is there sufficient detail in the Plan to provide clarity to developers, local communities and other interested parties about the nature and scale of development proposed on all employment allocations?1

1.41 The comments below relate solely to employment allocation 001: J6, M18, Thorne North. 1.42 A number of amendments to the site-specific development requirements set out in Appendix 2 are recommended in order to reflect the work undertaken and agreed to date on the current planning application on draft employment allocation 001: J6, M18, Thorne North, and to ensure that the site’s development and employment opportunities presented can be maximised in line with emerging market demand and the regeneration objectives established by the Doncaster Local Plan.

1.43 A response to the site specific matters outlined in Appendix 2 is provided below. We comment only where revisions are sought to this appendix.

Archaeology

1.44 A desk based archaeological assessment submitted with the pending planning application has established that there is a low potential for archaeological remains within the proposed development site. Neither are there any above ground designated heritage assets located within the site or within 250m of the site boundary.

1 PPG ID:61-002-20190315

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1.45 Given the outcome of this assessment and the low potential for adverse impacts on above or below ground heritage assets arising from development of the site, it is not considered that explicit reference needs to be made to matters of archaeology within the Development Requirements for Site 001. Adequate protection is afforded to below (and above) ground assets by way of wider Local Plan policies, notably Policy 36: Understanding and Recording the Historic Environment and Policy 40: Development Affecting Archaeology, both of which provide sufficient protection to below ground heritage assets and will ensure the inclusion of appropriate mitigation measures should these be required.

1.46 Reference to archaeological considerations from the Development Requirements for Site 001 should therefore be removed in order to provide a more justified and appropriate approach based on the evidence available and consistent with national planning policy.

Biodiversity

1.47 The illustrative masterplan submitted with the pending planning application shows how Site 001 can be developed alongside new structural landscaping to the site’s boundaries, which offers the opportunity for habitat creation and ecological habitat in accordance with this principle.

1.48 Importantly, however, survey work undertaken in respect of the pending planning application demonstrates that the site is not suitable foraging habitat for nightjar. As such, reference to the provision of habitats attractive to foraging nightjar should be removed from the Development Requirements for Site 001 in order to ensure a proportionate and justified approach consistent with national planning policy and the requirements of other relevant environmental legislation. Indeed, it is not recommended that habitat attractive to nightjar be included on this site due to the close proximity of the M18 motorway and high risk of collision. The River Don is located to the west of Site 001, rather than the east as stated in Appendix 2.

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Appendix 1: Commercial Property Partners - Site Overview and Market Demand Reports prepared 25th September 2019 and 2nd April 2020

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Site Overview and

Market Demand Report

Land at Thorne North , Doncaster, Junction 6 M18

Prepared by CPP for:

Barmston Developments Ltd

Private & Confidential

25 September 2019

1. Report Brief

Commercial Property Partners LLP (CPP) has been instructed by Barmston Developments Ltd to prepare a report which provides a site overview for the land at Thorne North and considers the market demand for a new industrial/logistics development site in this location.

The report will look at recent trends in the market and considers take-up rates, supply and current demand of industrial/warehouse space. The report will also review the subject site itself and consider its suitability for the proposed development.

2. National industrial/logistics market

Despite the ongoing political and economic uncertainty, occupational demand for industrial and logistics space has remained reasonably strong. 2018 was an exceptional year for take-up across the UK with the need for larger scale and better quality units driving demand. National take-up in 2018 amounted to approximately 32 million sq ft, circa 18% up on the year-on-year average. As a result, the national supply of buildings remains tight.

The uncertainty generated by Brexit is inevitably having an impact on confidence and decision making in 2019, however, the general view across the market is that this is a temporary issue and that the underlying appetite for logistics space remains strong.

One of the primary drivers of demand for warehouse space has been the growth in online retail. Take-up is driven predominantly by the retail and 3rd party logistics sectors as they continue to build and adapt their supply chains to accommodate the underlying and fundamental change in their business models caused by online retail activities. Organisations adapting their supply chains to cater for omni-channel retail, the need for returns centres, and ever shorter delivery times, are all fuelling demand in the logistics sector. In addition, growth from budget retailers such as The Range, Aldi and Lidl, B&M Bargains etc, all of whom continue to expand their distribution networks across the UK, adds further demand. Furthermore, the explosion in online retailing is also generating more requirements within the parcel delivery sector which has also seen significant growth in the past number of years.

There continues to be a trend towards larger facilities as occupiers strive for greater operational efficiency. Amazon have continued to dominate the logistics market and account for a substantial proportion of market take-up. Requirements from the leading retailers (both online and high street) typically require building footprints in excess of 500,000 sq ft, and in some cases up to 1 million sq ft.

3. Yorkshire industrial market – Over 100,000 sq ft

The following section considers industrial and logistics buildings in excess of 100,000 sq ft.

Demand The Yorkshire logistics sub-market has largely followed the same patterns as the national market with above average take-up rates and sustained occupier demand which is primarily driven by the growth in online retail. In 2018, the Yorkshire take-up of buildings in excess of 100,000 sq ft amounted to 3,226,509 sq ft, 17% ahead of the 5 year average of 2,750,000 sq ft.

Annual take-up rates for Yorkshire have been as follows:

YEAR TAKE-UP in SQ FT 2018 3,226,509 2017 1,451,829 2016 4,040,000 2015 3,062,900 2014 1,976,000 5 year 2,751,478 average

The following table shows the 2018 industrial/logistics property take-up across Yorkshire and immediate surrounds:

SIZE (sq BUILDING LOCATION OCCUPIER TYPE ft)

Logic Leeds, J45 370,000 Amazon Pre-let M1 on 33 acres

Euroway M606, 193,000 Expect 2nd hand, Bradford Distribution grade B. Requiring refurb

Aspect Doncaster, 123,000 MH Star 2nd hand, J4 M18 grade A

Normanton Normanton, 108,518 Leman 2nd hand. 108 Wakefield Logistics Recently refurbished

Park Road * Holmewood, 108,051 Strata Grade B , J29 M1 Products fully fitted. Build 1991

Axis 62 Normaton, 215,000 Panther 2nd hand. Wakefield Logistics Modern spec

Sheffield J 34 M1, 615,000 Clipper 2nd hand, 615 Sheffield fully refurbished

Westmoor J 4 M18, 190,000 ASOS 2nd hand, Park Doncaster grade B

Barlborough Junction 30 500,000 Amazon 2nd hand, Links * M1 grade B

Doncaster Harworth, 310,000 Daher 2nd hand South J34 A1(M) Aerospace building. 2007 build

Mountpark Wakefield 133,000 Symphony New build, Europort Group grade A

Logic Leeds, J45 360,940 Premier Pre-let M1 Farnell

* These deals are just outside the Yorkshire boarder but considered to be the same market/demand catchment area

Take-up for 2019 to date is summarised as follows:

BUILDING LOCATION SIZE (sq ft) OCCUPIER TYPE

Bessemer Sheffield 134,000 ITM Power New build, Park spec unit. Exchanged

Goole Goole, M62 232,000 Croda Pre-let

Super G Glasshought 261,000 Puma New build, on, M62 spec unit

iPort Doncaster 731,000 Amazon Pre-let

Tri-Link Wakefield 142,000 CMS New build, Europort grade A

Wakefield Wakefield 176,018 Torque 2nd hand, 31 Eurport Logistics grade B

Just outside the region, DHL acquired a 67 acre site at Manton Wood in Worksop in August 2019. They have subsequently agreed a forward sale of a 538,000 sq ft multi-user warehouse facility which they will occupy by way of a 20 year lease-back.

To date in 2019, total take-up in Yorkshire amounts to 1,676,018 sq ft. This currently stands at approximately 40% below the 5 year average annual take-up figure. Whilst we expect the year end figures to be below previous years, demand across the region is generally buoyant.

Supply Speculative development across this region has been relatively scarce (particularly 100,000 sq ft +), although we are beginning to see more pipeline schemes coming through as confidence in the sector has improved. Total building supply (100,000 sq ft +) currently stands at 3,058,973 sq ft which is provided across 14 buildings. This is a 45% increase since January 2019. The increase is the result of the speculative developments at Nimbus Park and G Park Doncaster both completing and also the second-hand former Argos unit at Normanton, Wakefield coming to the market.

The below table shows the current supply of buildings (100,000 sq ft+):

Immediate Availability: Building Location Size (Sq Ft) Owner Type Status NP106 Nimbus Park, 106,202 AIG New Available Doncaster NP164 Nimbus Park, 164,000 AIG New Available Doncaster G Park J4 M18, 278,000 Gazeley New Available Docnaster IP2e iPort, 195,000 Verdion New Available Doncaster IP2c iPort, 123,000 Verdion New Available Doncaster SIRFT Unit 1 Sheffield 336,000 Exeter 2nd hand Available Grade A Premier Way Normanton, 547,000 Exeter 2nd hand Available Wakefield Grade A Symmetry Harworth, A1 150,000 DB New Available Park (M) Symmetry Maverick 31 Wakefield 400,000 Argos Grade B Available Europort Ex Maplin Manvers, 197,000 Acendas 2nd hand. Available Electronics Rotherham Inc 20,000 sf office M190 Barnsley, J37 190,382 Co-Op 2nd hand. U/O Sub-let. Exp. Dec. 2022 Unit G, Wakefield, 134,824 - 2nd hand. U/O Wakefield 41 J41 M1 Sub-let. Exp Aug 2023 Gillcar Way Wakefield 111,600 Private prop 2nd hand. Available Europort co Sub-let. 4 yrs remaining Rotherham Junction 1 125,965 Goodman Former cold Available 125 M18 store Rotherham

Pipeline: Building Location Size (Sq Owner Timing Ft) Gateway 4 Doncaster, J4 409,000 Trebor / Planning granted. M18 Hillwood PC expected Q2/Q3 2020 Sherburn 667 Sherburn 667,000 Logicor Mid 2020 or sooner Wakefield Knottingley 515,000 Panatonni Subject to 515 planning. End 2020?

4. South Yorkshire industrial market – Below 100,000 sq ft

For the smaller, sub 100,000 sq ft market we have narrowed our commentary down to the South Yorkshire sub region as demand tends to be more localised.

The industrial market throughout the South Yorkshire region continues to perform well and we are witnessing a good level of enquiries across all sizes ranges and from a broad range of sectors, including general warehousing and manufacturing.

Warehousing continues to drive the majority of demand for units of sub 100,000 sq ft, from both general warehousing operators and also from parcel carrier operators. Notwithstanding this, we have seen a resurgence of demand from manufacturing based businesses. For instance, the Advanced Manufacturing Park (AMP) in Rotherham has proved a great success and has attracted a range of high profile manufacturing occupiers such as Rolls Royce, Boeing, McLaren and X-Cel Superturn to name a few. Outside the AMP, we have seen other non-warehouse based take-up such as Thornhill Engineering (61,000 sq ft at Parkside, Doncaster), Kingsbury Press (60,000 sq ft at iPort), DURA-ID (41,000 sq ft at Enterprise 36, Barnsley) and Technicut (96,000 sq ft at Shepcote Business Park, Sheffield).

Occupiers are generally seeking modern accommodation with good eaves height to allow for efficient racking, dedicated car parking, and good sized external secure yards for increased vehicle movement. We are finding that modern accommodation is more desirable, as it offers better build quality, energy performance and aesthetic appeal.

Location continues to be paramount to occupier’s requirements, with easy access to the road network and availability of labour being key factors.

The amount of sub 100,000 sq ft speculative development across South Yorkshire is relatively limited, albeit is increasing, with a number of schemes underway or due to begin shortly. Where schemes have been completed, take-up has been very strong with several units being taken before completion of the development.

Summarised below are some recent transactions for sub 100,000 sq ft across the sub region. These are new build and modern properties only and have been transacted within the last 18 months:

SITE LOCATION SIZE (sq OCCUPIER TYPE ft) Enterprise Tankersley 58,000 William Pre-sale 36 J36 M1 Rowland Enterprise Tankersley 41,000 Dura ID Pre-sale 36 J36 M1 Shepcote Sheffield 96,000 Technicut 2nd hand Business modern unit Park

Capitol Junction 37 70,000 Gem Imports Pre-sale Park, M1 Barnsley iPort Doncaster 60,000 Kingsbury New build, Press spec unit Gateway 36 Dearne 75,000 Motor Depot New build, – Helix Valley spec unit Parkway, J 36 Units C & D Wheatley 61,000 Thornhill New build, Parkside Hall Road, Engineering spec unit Doncaster Unit B Wheatley 41,096 Schenker New build, Parkside Hall Road, spec unit Doncaster Unit A Wheatley 38,846 Bosch New build, Parkside Hall Road, spec unit Doncaster R-evolution The AMP, 80,000 McLaren Pre-let @ AMP Rotherham phase 2

5. The Site

The subject site provides a total gross site area of approximately 180 acres. The site is predominantly flat and relatively regular in shape. This provides a great deal of flexibility and enables the developer to cater for a wide range of occupier requirements. This is particularly important in the current logistics market where occupiers’ needs are continually evolving as a result of the shift to online retailing.

The scale of the subject site is key as this provides maximum flexibility and enables the developer to cater for all unit sizes. At 180 acres, the site can accommodate very large, single building footprints, potentially up to circa 1,300,000 sq ft. Sites that can accommodate such large building are rare across the UK and therefore the subject site will appeal to occupiers on a national basis. This scale enables the site to accommodate lager requirements which we have seen from the likes of Amazon, Lidl, Ikea, Pretty Little Thing, Great Bear, DHL amongst others. Within Yorkshire, sites which can accommodate such large buildings are particularly scarce which further adds to the appeal of this site. Smaller requirements can also be accommodated, satisfying the sub regional and local Doncaster demand as summarised above. New build product in this location would improve the quality of product available for local businesses enabling growth and local expansion.

The site is positioned very close to Junction 6 of the M18. Junction 6 is not heavily used and therefore comparatively congestion free which would enable occupiers to have fast and unfettered access to the Motorway. This is a key search criteria for most industrial/warehouse occupiers and sites which offer closer links to the motorway are normally favourable.

The site is close to the towns of Moorends and Thorne and to the north of Doncaster. The M18 and A1(M) corridors around Doncaster have become one of Yorkshire’s primary distribution locations with an established critical mass of large scale occupiers. The key attractions to Doncaster have been:

• Motorway connections - North/South via the A1(M)/M1 and East/West via the M18/M62 corridors • Labour availability. Access to a suitably skilled workforce • The availability of large tracts of consented development land which can accommodate large footprint buildings

Access to skilled labour is becoming increasingly important to occupiers and is often now the main search criteria when selecting a new site. Established logistics locations such as Northampton and Milton Keynes are currently suffering from an acute shortage of available labour which is pushing occupiers into other regions.

Doncaster’s labour offering is attractive. Gross weekly and hourly wage rates in Doncaster are competitive relative to the UK national average. Over 785,000 people live within a 45 minute drive- time of the subject site (Source: drivetimemaps.co.uk). These statistics are a primary reason for Doncaster’s success in the logistics and industrial sector.

The site is also very visible from the M18 which would offer occupiers prominent signage opportunities. Whilst this is unlikely to be the main determining factor for occupiers, it would enhance the site’s appeal to some businesses who wish to promote their brand.

For the reasons set out above, we consider the subject site to be suitable for industrial/logistics development. In particular, the site will particularly appeal to occupiers seeking large footprint warehouse facilities.

6. Occupier Specification Requirements

Occupier requirements vary according to the specific use of a building. Set out below are a number of current requirement trends:

• Building Size There continues to be a trend towards larger footprint buildings. We have witnessed several requirements for buildings in excess of 500,000 sq ft and sites which are capable of accommodating these are relatively scarce.

• Building Height The height of buildings is increasing. The institutional standard for a warehouse of say 200 – 500,000 sq ft would be circa 15m to 18m to eaves. However, we have seen bespoke units providing high bays sections of up to 30m to accommodate multi-deck mezzanines or bespoke automated racking systems. For example, DHL at Manton Wood has a 28m high section. Amazon at Summit Park Mansfield will be 18m to eaves.

• Cross Docking Some occupiers would require a cross dock configuration which involves loading yards along both building elevations. This entails a higher site area and lower build density. A cross dock building is more typical for buildings in excess of 500,000 sq ft and tend to be procured via a built to suit development.

• Power Warehouse facilities are becoming more power hungry as a result of increased building sizes and a greater emphasis on automation. The new Amazon development at Summit Park Mansfield which will provide a 3 deck warehouse totaling 1.8m sq ft has a power allocation of 4 MVa. The new DHL site at Worksop which will eventually provide up to 1 million sq ft, has an application for 8 MVa.

• Larger yards Occupiers will almost always favour larger yards to provide ample circulation and HGV trailer parking. The institutional standard site density is 40%, however, many bespoke schemes are closer to 30% site cover. Cross docked units and parcel delivery hubs are particularly land hungry.

• Carbon footprint reduction measures Many occupiers are seeking to reduce the environmental impact of their warehouse operations. Typical measures introduced to new build developments are:

o BREEAM ‘very good’ o LED lighting o EPC A rating o Smart meters o Solar thermal water heating o Increased natural light to warehouse o Rainwater harvesting

7. Market Enquiries

Listed below is a selection of specific occupier requirements which could potentially be suited to the proposed development at Thorne:

Great Bear South Yorkshire 500,000 sq ft Potentially looking for a site of up to 500,000. Ceva Logistics South Yorkshire 300,000 sq ft A new contract led search for a warehouse facility Ocado Yorkshire or 500,000 sq ft plus Long standing requirement North West looking across the North DTI Yorkshire 300 – 500,000 sq ft On behalf of Saudi based can manufacturer Kelkay/Ames M18 Up to 200,000 sq ft Consolidation exercise. Feasibility study Wincanton South Yorkshire Up to 300,000 sq ft Various contract tenders underway ABP Doncaster 100,000 sq ft Potential expansion CBRE South Yorkshire 300,000 sq ft For an unknown occupier

Site Overview and

Market Demand Report

Land at Thorne North , Doncaster, Junction 6 M18

Prepared by CPP for:

Wilton (Thorne) Ltd

Private & Confidential

2 April 2020

1. Report Brief

Commercial Property Partners LLP (CPP) has been instructed by Wilton (Thorne) Ltd to prepare a report which provides a site overview for the land at Thorne North and considers the market demand for a new industrial/logistics development site in this location.

2. National industrial/logistics market

The uncertainty generated by Brexit inevitably had an impact on confidence and decision making in 2019, however, the general view across the market is that this is a temporary issue and that the underlying appetite for logistics space remains strong.

3. Yorkshire industrial market – Over 100,000 sq ft

The following section considers industrial and logistics buildings in excess of 100,000 sq ft only.

Annual take-up rates for Yorkshire have been as follows:

YEAR TAKE-UP in SQ FT 2019 3,014,206 2018 3,226,509 2017 1,451,829 2016 4,040,000 2015 3,062,900 5 year 2,959,089 average