Panattoni, the UK’s largest industrial developer, is collaborating with Newlands Developments to create a 800,000 sq ft logistics hub in Milton Keynes.

The project, which is understood to have a gross development value north of £200m, will comprise two speculatively constructed units of 450,000 sq ft and 350,000 sq ft on a 50 acre site next to the M1.

The developer said Panattoni Park Milton Keynes “has the capacity to serve all of the UK, enabling efficient connectivity and distribution across key regions”.

James Watson, Head of Development Southern England and London at Panattoni, said: “Panattoni Park Milton Keynes marks a significant step in our ongoing commitment to big box development in key UK locations. Our strategy focuses on addressing the evolving needs of the logistics market and our clients.

“The decline in new speculative development starts in the past 12 months will give this project first mover advantage in the market. Panattoni Park Milton Keynes is a testament to our commitment to the ongoing growth of the sector and the delivery of top-tier logistics developments.”

Simon Williams, head of development at Newlands Developments, said: “The site is ideally located for the speculative development and will offer customers a fantastic opportunity in the large-scale logistics property market. The units will be constructed to the highest BREEAM and EPC ratings confirming both Newlands’ and Panattoni’s commitment to sustainable development. We look forward to working closely with the Panattoni team to provide a successful development at Milton Keynes.”

Cushman and Wakefield was an adviser on the deal.