Headlam lays foundations with new hub

A leading flooring distributor is consolidating its North East operations into a new regional hub as part of plans to improve customer service and support future growth.

Headlam Group has agreed terms to lease a new 65,000sq ft distribution centre at Centralway 65 in Team Valley, Gateshead.

The state-of-the-art facility will replace the company’s existing Newcastle and LGS sites, bringing operations together under one roof and creating a larger trade counter with increased parking for customers.

The new distribution centre features a dedicated 65-metre yard, dock and level access loading facilities and a range of sustainable features designed to enhance operational efficiency.

All employees from the two existing locations will transfer to the new site over July and August as the facility becomes fully operational.

Bosses say the move will strengthen support for its independent retailer and contractor customers across the North East and wider North of England, while providing capacity for future growth.

They add the relocation forms part of Headlam’s core customer strategy, announced earlier this year, which focuses on supporting independent retailers and contractors while reducing the company’s property footprint as it targets a return to profitability in 2027.

Rob Barclay, chief executive of Headlam Group, said: “We are laser focused on rebuilding our base of core independent retailers and contractors, the customers on which the strength of this business depends. 

“Bringing two of our teams together at our new, modern distribution facility in the North East is the latest step in our journey to create a simpler, more effective business that is better aligned to these customers. 

“It will help us bring our teams together into one location, creating a stronger and more connected operation that better supports our customers and our future growth.

“Our team are already hard at work getting the site ready and we look forward to welcoming our customers from across the North of England in the summer months ahead.”

Centralway 65 was developed by UK Land Estates to address demand for high-quality industrial space in the region, with commercial property specialist Naylors acting on behalf of the landlord to secure the letting.

David Gibbs, property director at UK Land Estates, added: “We are delighted that Headlam Group is continuing to invest in Team Valley. 

“While speculative development inevitably carries risk, our confidence was underpinned by the clear and persistent imbalance between supply and demand for high-quality industrial and warehousing space across the region. 

“This transaction reinforces that conviction and highlights the depth of occupier demand we continue to see.

“The letting has enabled one of the UK’s leading flooring distributors to strengthen its regional footprint, and it also demonstrates the importance of bringing forward well-located, high-specification space in a constrained market. 

“We look forward to working closely with the Headlam team as they continue to increase their presence across the North of England.”

Keith Stewart, partner at Naylors, added: “We received strong interest in Centralway 65, including from two other high-profile occupiers, which underlines the quality of the building and the strength of demand for prime industrial space in the region. 

“For Headlam, this was the right building at the right time as the business continues to invest in and future-proof its operational facilities.”

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