Showdown looming over huge employment site

A showdown is looming between two development giants over land surrounding East Midlands Airport (EMA) that has been designated as a Freeport. Both SEGRO and Prologis have lodged competing plans for the land, to the south of the airport. When the Freeport land was designated in February 2022, it was anticipated that a deal would be done between EMA and Segro under which latter bought out the former and applied to the local authority via a planning application.

However, SEGRO now has an "s35 Decision" to start to use the development consent order (DCO) process over all the site, including that owned by EMA. If the DCO is granted, then SEGRO will have compulsory purchase powers over the EMA land. The East Midlands Freeport, the UK's only inland Freeport, comprises three development sites: the East Midlands Airport and Gateway Industrial Cluster (EMAGIC), Ratcliffe-on-Soar Power Station site and East Midlands Intermodal Park (EMIP).

SEGRO's East Midlands Gateway II plans cover the undeveloped area of the EMAGIC site located to the south of the A453. Approximately one-third of this land is owned by Manchester Airport Group, and SEGRO has secured options to acquire the remaining two-thirds. Due to its scale, the East Midlands Gateway II development has been designated as a nationally significant infrastructure project and will be brought forward under a Development Consent Order (the same process used for EMG I), with the application made directly to and decided by Government.

Last month, MAG (Manchester Airports Group), which owns and operates (EMA), revealed Prologis as its partner to take forward the development of a new industrial logistics and advanced manufacturing park near East Midlands Airport - which could create hundreds of jobs. The news was hailed as a "huge vote of confidence in the East Midlands" by Chancellor Rachel Reeves as she unveiled her Government's plan for growth across the UK. The new park is a designated East Midlands Freeport tax site which, the airport says, will help to unlock GBP1bn of investment in and around the airport.

Paul Weston, regional head of Prologis UK, told TheBusinessDesk.com: "Prologis controls 100 acres situated to the south of the A453 at EMA, forming the boundary for planning application 24/00727/OUTM. "We intend to progress planning at pace, with a view to start on site as soon as possible to unlock investment into the East Midlands Airport Freeport zone.

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"We believe this to be the most efficient route to delivery and can enable possible future phases to the south of Hyam's Lane." Meanwhile, Segro has told TheBusinessDesk.com that it wants to "deliver investment beyond the development itself" and is currently engaged in a public consultation process to bring forward the second phase of its Logistics Park East Midlands Gateway, which it says will create a 3.5m sq ft advanced manufacturing and logistics park, unlocking billions of pounds of investment, attracting foreign direct investment into the UK and creating 4,000 sustainable jobs

A spokesperson for SEGRO, told us: "SEGRO is developing plans for the entire site to realise the full vision of the Freeport, maximise job creation and economic benefit, and deliver investment in infrastructure beyond the development itself, which is only financially viable if the whole site is progressed. "As part of the DCO application, SEGRO is currently underway with a thorough programme of public consultation events, ahead of its submission to MHCLG in Q2 2025, with determination anticipated in Q4 2026. If successful, SEGRO will start work immediately in 2027 to deliver the project within the Freeport window.

"The alternative scheme being progressed by Manchester Airport Group does not affect the DCO application process." A spokesperson for East Midlands Airport said: "We are aware of SEGRO's alternative approach to the proposed development of land south of the airport. The planning application promoted by ourselves and our development partner Prologis, will still be considered by North West Leicestershire District Council, which we believe offers the best opportunity for a fair outcome.

"We maintain that our proposals, following public consultation and recognised by the Chancellor of the Exchequer as a key enabler of regional growth, are the best way to achieve the Freeport's aims to bring new investment and jobs to the region. This land was included within the EMAGIC tax site, at the request of the Freeport, for precisely this reason." Previous Article

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