Newlands Developments Secures £72 Million Forward Funding for 350,000-SF Orchard Park Industrial Scheme at Eurocentral

Newlands Developments and Tulchan Development have secured a £72 million pre-construction forward funding commitment for Orchard Park, a speculative industrial and logistics scheme at Eurocentral in North Lanarkshire, in what the parties are calling the largest deal of its kind in Scotland in three decades.

CBRE brokered the funding commitment between a US-based investor and the development team. The transaction was announced Sept. 28, 2026.

Project Details and Timeline

Orchard Park will be developed on a 40-acre site at Eurocentral, located alongside the M8 motorway between Glasgow and Edinburgh. The scheme will deliver more than 350,000 square feet of new Grade A accommodation across five units, with individual unit sizes ranging from 42,500 square feet to 122,500 square feet. Bespoke design options will be available to suit occupier requirements.

Construction is scheduled to commence in the first quarter of 2027, with practical completion targeted for the second quarter of 2028.

Bryce Stewart, senior director at CBRE, and Iain Davidson, a director at Colliers, are the retained letting agents on the scheme.

Parties and Transaction Structure

The forward funding structure commits capital ahead of construction without disclosed pre-letting agreements, transferring the development capital requirement to the investor while allowing the developer to deliver space in advance of tenant commitments. The identity of the US-based investor has not been publicly named in available announcements.

Douglas Steele, associate director at CBRE, said the deal reflects growing international recognition of opportunities within Scotland's industrial and logistics sector.

"The deal reflects the growing international recognition of the opportunities within the country's industrial and logistics sector," Steele said. "Orchard Park will be central in building that momentum, delivering high-quality, strategically located space that can help address occupier demand and set a new benchmark for industrial development in Scotland."

Stephanie Bishop, development director at Newlands Developments, said the commitment represents a significant milestone for Scotland's industrial and logistics market.

"We believe this investment will attract significant occupiers who require top quality buildings available in the immediate future," Bishop said. "It will reinforce Scotland's position as an increasingly important destination for industrial and logistics investment."

Market Conditions Along the M8 Corridor

The investment is underpinned by sustained occupier demand across Scotland's industrial sector, particularly within the Central Belt and along the M8 corridor, where vacancy rates are approximately 2.5 percent — a level the parties characterize as exceptionally low. Scotland's overall industrial vacancy rate stood at 3.9 percent in the second quarter of 2026, down 100 basis points year over year.

Scottish industrial take-up reached 57,463 square feet in Q2 2026, a significant decline from prior periods. Market data indicates that constrained supply rather than weak demand has been a primary factor suppressing completed transactions, as a shortage of modern, large-format buildings limits the options available to prospective tenants. For units larger than 50,000 square feet, Central Belt rents were reported at approximately £10.75 per square foot.

Prime mid-box rents in Scotland rose 8.7 percent in the year to July, while average industrial rents increased 6.1 percent, outpacing the 4 percent UK average. Scottish industrial rental growth is forecast at 2.2 percent for 2026, with the Central Belt expected to outperform at approximately 3.7 percent.

Strategic Significance and Competitive Context

Eurocentral's position on the M8 corridor provides direct access to both Glasgow and Edinburgh as well as national distribution routes. The five-unit configuration at Orchard Park, spanning 42,500 to 122,500 square feet per unit, is designed to serve a range of logistics, distribution, manufacturing and trade-counter users.

The scheme will compete with other Central Belt industrial projects, including additional development activity at Eurocentral, where planning approvals have been granted for further industrial units in the same submarket. The delivery of Orchard Park in Q2 2028 positions the project to address medium-term occupier demand in a market where available Grade A supply remains limited.

The transaction also signals continued international investor interest in Scottish industrial and logistics assets at a time when speculative development at scale has been largely absent from the market for an extended period.

Sources

Forum Partners Investment Management: https://www.forumpartners.com/news/newlands-developments-largest-deal-of-its-kind-in-scotland-in-30-years-will-add-350000-square-feet-at-eurocentral-next-to-m8