THE UK real estate investment trust RDI has announced a £26m funding agreement which will see the development of two new warehouse units at Link 9 in Bicester.

Situated on a 40-acre site, Link 9 is a major new distribution, production and headquarters development, strategically located close to Junction 9 of the M40.

Construction has started on phase three, which will see a new 120,225 sq ft high-quality distribution unit built, ready for occupation in April 2019.

RDI will also fund development of phase four, a 168,058 sq ft unit which is expected to be ready for occupation in November 2019.

Tom Barton, director at commercial property agents VSL, which is marketing the scheme, said: “The scale of Link 9 has not been seen before in Oxfordshire in terms of speculative industrial development and its significance for Bicester and the surrounding region cannot be underestimated.”

Albion Land developed the first phases of construction at Link 9 and will continue as development partner to oversee the construction of phase three and four, following the sale of the 13.5 acres to RDI REIT.

Simon Parsons, director of Albion Land, added: “The success we have had with the initial phases at Link 9 is encouraging and we have already had strong interest from occupiers on the two new speculative units.”

Sarah Jones, senior asset manager for RDI REIT, added: “The acquisition of high-quality distribution assets in Bicester, through a forward funding agreement, presents a clear opportunity to increase our exposure to a sector with strong structural support and rental growth prospects, at an attractive entry price.”

Network 9 is a key part of the jigsaw in the overall development of Bicester with major employers queuing up to move in.

British Bakels bought an 80,000 sq ft building on the scheme, which it will use as an additional distribution facility to support its main manufacturing operation in Granville Way.

Bicester itself is expanding rapidly expanding with the town’s population set to increase from 30,000 to 50,000 by 2031.

The town already offers a skilled workforce which should increase substantially.

Bicester is a focus for development due to its excellent road and train connections, coupled with the ready availability of land to accommodate infrastructure projects.

A new rail connection to London and Oxford was recently opened as well as junction improvements to the M40 and Bicester town.

This has already encouraged further development including expansion of the Bicester Village retail park and a comprehensive redevelopment of the town centre.

A further 10,000 homes are set to be built by 2031 with several schemes currently ongoing such as Graven Hill, the UK’s largest self-build residential project.

Link 9 is in close proximity, with the homes ensuring its workforce can be accommodated locally.

VSL & Partners, Colliers International and White Commercial are marketing the speculative space at Link 9.

Chris White, managing director of White Commercial, said: “We are seeing very strong demand in the industrial sector in Bicester, famous for Bicester Village and its six million visitors a year.

“The area is attracting significant investment in both its infrastructure facilities and housing, with its population set to double by 2031 to 50,000.”

Last year bakery ingredients specialists British Bakels were the first company to move into an 80,000 sq ft unit at Link 9.

It allowed the firm to accommodate all its warehousing requirements in its own premises, replacing facilities currently rented from a third party.

Longer term, the new building gives British Bakels the ability to expand its production facilities at its existing site in Granville Way.

Since commencing operations in Bicester in 1990 employee numbers have increased to 200 and Bakels does continue to have ambitious growth plans.

As part of the Cherwell Local Plan, which seeks to deliver jobs-led growth, Link 9 was the first in Bicester to achieve planning consent for large distribution and manufacturing buildings, in addition to offices and research and development.

At the same time, a shortage of smaller industrial buildings along the M40 has resulted in White Commercial receiving interest in two small units in Banbury.

Kingfisher House and Thorpe House, both detached industrial buildings of 3,220 and 4,337 sq ft respectively, achieved prices in excess of the quoted values, a sign that there is also an appetite from companies for smaller units.