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Business News Wales
12-08-2025
- Business
- Business News Wales
Wales Industrial Market Take Up Falls by Almost Half
Wales industrial market take up in Quarter 2 (Q2) 2025 was over 239,000 sq ft for units over 50,000 sq ft, according to the latest Logic research by global property consultancy Knight Frank. This brought the total take up for H1 2025 to 538,900 sq ft, 48 per cent lower than the same period last year. Neil Francis, who heads Knight Frank's Logistics & Industrial division in Cardiff, said: 'It has been another challenging quarter with transaction for units over 50,000 sq ft significantly down on previous years. On the one hand, the dip in volumes reflects the shortage of high quality stock available, which is resulting in steady rental growth, but is also partly due to increasingly elongated deal timelines. 'However, the sizeable amount of space under offer provides a strong indication of the underlying strength of demand. Nearly 850,000 sq ft – 22 per cent of supply – was under offer at the end of June, including three units over 100,000 sq ft in size. If progressed, these deals could significantly lift take up in the second half of the year.' Activity so far this year has been dominated by owner occupiers with four of the five H1 transactions being freehold purchases. The largest transaction in Q2 was Euro Clad Limited's acquisition of their three units at Wentloog Corporate Park in Cardiff that totals around 170,000 sq ft. Manufacturers remained the most dominant source of industrial property demand in Wales. Their 62 per cent share of take up over the past four quarters to Q2 2025 was up from 46 per cent in the same four quarter period last year. Retailers also re-entered the market after being largely absent over the past year. During Q2, online catering equipment reseller Adexa Direct purchased the 75,190 sq ft Unit E at Treorchy Industrial Estate, Treorchy for storage purposes. According to the Knight Frank research, the availability of 50,000 sq ft plus units across Wales edged up slightly in Q2, by 3.7 per cent to 3.9 million sq ft. However, it remains 25 per cent lower than a year ago, reflecting a broader trend of tightening supply. Neil Francis said: 'Crucially, the entire pool of available space is second hand, and 96 per cent of this is Grade B or below. This underlines the growing mismatch between supply and the new, modern requirements of occupiers. At the larger end there are only two available units over 250,000 sq ft, one of which is under offer.' The speculative pipeline for industrial property in Wales remains thin, with just the 55,000 sq ft Unit 1 at Leftfield in Deeside, North Wales breaking ground in Q2, with practical completion expected in Q3 2025. 'There is currently no 50,000 sq ft plus industrial speculative development activity in South Wales,' said Neil Francis. Prime industrial rents in Cardiff for units over 30,000 sq ft reached double digits in Q2, rising by 2.6 per cent to a new headline rent at the 36,000 sq ft Unit 32 at Coryton, Cardiff where FPS Distribution has taken a 15 year lease. The unit is arguably in one of the best located sites in the region, being on the M4/A470 Junction. This rental increase represents 14.3 per cent growth year on year. Average rental growth of 3.3 per cent is forecast for Wales for 2025, with 3.4 per cent expected for Cardiff.
Wales Online
23-05-2025
- Business
- Wales Online
Redevelopment plans for former Tillery Valley Foods factory site in Blaenau Gwent
Redevelopment plans for former Tillery Valley Foods factory site in Blaenau Gwent The site has been acquired by property management firm Industruct in a £1.25m deal A factory site once occupied by Tillery Valley Foods near Abertillery, before it collapsed into administration with the loss of 200 jobs, has been acquired in a £1.25m deal. The freehold interest in the empty site, marketed by the Cardiff office of property advisory firm Knight Frank, has been acquired by independent commercial property management firm Industruct. In its first acquisition in south Wales, the Leeds-based company plans to redevelop the 116,520 sq ft factory, which occupies a seven acre site at the Cwmtillery Industrial Estate, into a number of modern industrial units for local businesses. The new units will start at 5,000 sq ft. Global property consultancy Knight Frank advised the vendor, Cable Property Management, in the sale of the site. Tillery Valley Foods ceased trading in 2023. Neil Francis, head of Knight Frank's logistics and industrial division in Cardiff, said: "It was devastating news for the local community when the food products business went into administration two years ago, but this acquisition by Industruct is equally good news. Article continues below "The company is expert at adding value to commercial property and this first venture into the south Wales property market is a vote of confidence in the long term prospects for the region." Ceri Hartnell, head of asset management at Industruct, said: "We are already on site carrying out extensive refurbishment and upgrade to the existing buildings. We will divide and reconfigure the existing buildings to provide a range of production and logistics units from 5,000 sq ft upwards. "We are looking to create modern and well-equipped industrial accommodation in a range of sizes and flexible options to give businesses from the area and further afield premises that exactly match what they require. Article continues below "We are happy to work with potential tenants to explore how the space can be divided if required, and can work alongside potential new tenants to split the property into a configuration that works best for them." Cwmtillery Industrial Estate is two miles north east of Abertillery.
Business News Wales
02-05-2025
- Business
- Business News Wales
Industruct Acquires Cwmtillery Production Unit in £1.25 Million Deal
Independent commercial property management company Industruct has acquired a former food production unit on Cwmtillery Industrial Estate, near Abertillery in Blaenau Gwent for £1.25 million. In its first acquisition in South Wales, the Leeds-based company plans to redevelop the 116,520 sq ft former Tillery Valley Foods factory into a number of modern industrial units for local businesses. Global property consultancy Knight Frank advised the vendor in the sale of the premises. Neil Francis, head of Knight Frank's Logistics & Industrial Divion in Cardiff, said: 'It was devastating news for the local community when the food products business went into administration two years ago, but this acquisition by Industruct is equally good news. 'The company is expert at adding value to commercial property and this first venture into the South Wales property market is a vote of confidence in the long term prospects for the region.' Ceri Hartnell, head of asset management at Industruct, said: 'We are already on site carrying out extensive refurbishment and upgrade to the existing buildings. We will divide and reconfigure the existing buildings to provide a range of production and logistics units from 5,000 sq ft upwards. 'We are looking to create modern and well-equipped industrial accommodation in a range of sizes and flexible options to give businesses from the area and further afield premises that exactly match what they require. 'We are happy to work with potential tenants to explore how the space can be divided if required, and can work alongside potential new tenants to split the property into a configuration that works best for them.' Cwmtillery Industrial Estate is two miles northeast of Abertillery town centre, with close proximity to the A467 and access to the A465 Heads of the Valleys Road five miles to the north, and Junction 28 of the M4 16 miles to the south.
