Speculative Industrial

Development, Pencoed

Delivering Strategic Value through Public/Private Partnership

Text on blue background displaying investment details: 'Speculative Industrial Development, Client: Deeside Regeneration Limited, Value: £5 million, Duration: 37 weeks'.

Occupying a prime location in the heart of South Wales, equidistant between Cardiff and Swansea, this speculative industrial development at Pencoed demonstrates the power of strategic investment and effective collaboration between the public and private sectors.

Supported by a grant from the Welsh Government’s Property Infrastructure Fund, the development was undertaken on a speculative basis, targeting regional demand for high-quality logistics and distribution facilities. Prior to practical completion, the client secured a long-term occupier with a 10-year lease agreement signed by Sainsbury’s Supermarkets Ltd for a new Argos distribution centre underscoring the attractiveness and commercial viability of the scheme.

The newly constructed unit comprises 43,562 sqft of warehouse space and 1,873 sqft of modern office accommodation. Key features include:

  • Five loading bays

  • 10m clear internal height to eaves

  • Electric charging for 8 vehicles 

  • 100 x 50m concrete service yard

  • 28.8 Kw solar array 

  • New 11kv sub-station 

  • 72 dedicated car parking spaces

  • Compliant FM2 Warehouse Floor Finish

  • Floor loading capacity of 50kN/sqm

Demonstrating a strong commitment to sustainability and futureproofing, the facility has achieved a BREEAM "Excellent" rating and an EPC "A" rating. To satisfy SAB, Innovative surface water management was delivered through the integration of rain gardens, filtration beds, and a large attenuation basin providing both functional resilience and ecological benefit.

This project is a clear example of how targeted public funding can de-risk speculative development, attract major occupiers, and deliver lasting economic value. The facility has generated significant employment opportunities and supports the continued growth of the logistics sector in South Wales.

The Andrew Scott team have delivered a high-quality scheme for Hillwood UK / Deeside Regeneration Ltd at Plot A Pencoed Technology Park. It has been evident from all site visits that Jamie Fletcher has led an effective site team with excellent standards of Work, H&S and site presentation. We note that despite unprecedented inflation during the build contract period, all commercial issues were dealt with collaboratively and fairly by all parties.  We would happily recommend ASL for future work on similar projects.

James Williams Senior Project Manager, Hillwood UK.