One of the fastest growing industrial locations in the East Midlands

Clowes Developments’ Castlewood site has cemented its position as one of the fastest growing industrial locations in the East Midlands after a distribution specialist unveiled plans for a £20m warehouse complex.

UDG, a specialist distribution company for the healthcare industry, has begun work on a 220,000 sq ft warehouse development which may ultimately employ up to 250 people.  It is the latest in a series of major names to sign up to Castlewood, which has now become established as a regional destination for businesses looking for bespoke development served by a major motorway route interchange.

The company joins Co-Operative Food, which has developed a 480,000 sq ft landmark distribution centre employing 900 people to serve is regional store network.  Castlewood is also home to new developments by the electronics division of transport giant Bombardier, Midland Aerospace, and automotive industry supplier Meridian Lightweight Technologies.

The site is less than a mile from the interchange of the north-south M1 and east-west A38 at Junction 28, and the momentum behind its expansion is such that Clowes Developments is now embarking on the provision of restaurant facilities and a petrol station to support the numbers of people working on and visiting the site.

James Richards, Development Surveyor at Clowes Developments, explained: “When we acquired Castlewood there was no question that it was an ambitious move, but we felt from the start that a perfect location and the significant scope of the site meant that it had enormous potential.

“It is a genuine strategic location and we have worked hard to deliver development opportunities that would meet the needs of some prestige occupiers while remaining commercially pragmatic.  The names of the companies who have moved on to the site suggest our faith is paying off.

The next step is likely to be the development of facilities to support a site which will be home to substantial numbers of people.  Looking forwards, there are still some significant development opportunities on the site and Clowes Developments is in a strong position to provide solutions for occupiers.”

The UDG deal also involved a number of leading regional professionals, with Claire Gay, of the Nottingham law firm Brown Jacobson, representing UDG, and Heather Dixon, of the Derby solicitors Flint Bishop, handling legals for Clowes Developments.

UDG already has three distribution facilities near Junction 28, but continuing expansion means a new, purpose-built warehouse is now needed.  Chris Williams, UDG’s Managing Director, commented: “We have outgrown our existing properties and we are fully expecting our business to expand further.

“We did consider a number of other locations for our new development, but the key benefit of moving here is that it is immediately accessible to the people who work at our other sites.  This is important, because they are an experienced team.  We anticipate that around 50 people will work here to begin with, probably transferring form other sites, but we would expect to be adding another 150-200 jobs over the next three years.”

UDG is likely to invest around £20 million in the site over the course of its lease.  Mr Williams added: “Being close to the motorway is particularly important for a business like ours, and moving on to a site like Castlewood gave us the opportunity to develop a building from scratch to our own specification.”

All the deals at Castlewood have been secured by the Nottingham property consultancy FHP. John Proctor, director of the firm’s office and industrial team, said: “Castlewood stands out as a genuine success story during some challenging times.  To secure occupiers of the calibre of UDG so soon after the Co-Op transaction is a testament to the site’s quality.

“Its location is the key to why it has succeeded – it’s less than a mile from Junction 28, which gives occupiers fast and easy access to enormous regional and national markets.  The economy is certainly starting to look up now and on that basis we would expect more businesses to come to Castlewood in the coming months.”


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