Road to redemption
The impending opening of the M49 junction
Opened in 1996, the M49 has spent a quarter of a century being the only British motorway without any junctions and the only one in the UK that did not touch the ordinary road network at any point. It met the M4 at one end, the M5 at the other, and had no way on or off between those points. However, in 2019, a glimmer of change appeared on the horizon when a new junction was deemed complete… or so it seemed.
Highways England spent £50 million to build the junction over a two-year period.
Although the project seemed visually complete, the junction remains disconnected from local roads due to the absence of a link road, hence earning the nickname ‘ghost junction’- a junction that leads to nowhere.
For a long time, whenever anyone was asked about when they thought the junction was likely to open, people would simply laugh, shrug their shoulders, and respond “it’s anyone’s guess”. However, nearly four years on since the junction was declared almost completed, South Gloucestershire Council has now announced that it has secured £7 million from the government to finish the project. Roadworks are expected to start later this year, followed by a 12-month construction programme before the junction’s long-awaited opening.
Unlocking potential: the strategic importance of the new junction
This new junction has been a long time coming, with plans for the infrastructure project first announced in 2017. This much-needed junction will offer immediate access to Severnside, further establishing this area in the south west as a prominent distribution hub. The area is already home to a number of household names, such as Amazon, Lidl, The Range, and Curry’s, to mention a few. These prominent companies recognised the advantages offered by the new junction upon its opening, compelling them to select this area as their regional distribution centre.
Relieving congestion and enhancing accessibility
Now that the tolls on the Severn Bridge have been abolished, the extensive delays completing the ghost junction has allowed areas such as Newport and Magor to compete favourably for occupier requirements. These locations now offer immediate access to the M4 motorway on Junction 23A, whereas occupiers on Severnside currently have a reasonably convoluted route to get to Junction 18 of the M5 or Junction 1 of the M48 before the onward journey to distribute across the region. As a result, headline rents in Newport and Magor are now comparable to Severnside, and the demand for space just over the bridge can be witnessed by the successful run of lettings at St Modwen Newport and the new 155,000 sq ft Owens Transport facility in Magor.
The new junction on the M49 will give Avonmouth and Severnside a resurgence and the location will regain its identity as the gateway for distribution in the south west and south Wales.
It will offer vital access to help unlock the economic potential of the Avonmouth Severnside Enterprise Area. Furthermore, once constructed, the new link road will relieve congestion in the area, which will act as a stepping stone for the local authority to focus on the next infrastructure project, widening the spine roads to incorporate cycle routes to make the area more accessible for pedestrians and warehouse staff.
The Severnside area has been held back in recent years as a result of the lack of progress opening the junction, however once completed, we anticipate there could be a spike in rental growth, with headline rents potentially creeping up towards £10.00 per sq ft for 100,000+ sq ft as occupiers re-focus their attention back on this location, and supply continues to tighten.
Tom is the Head of the South West Industrial & Logistics team in Bristol. He joined Colliers in 2012 as part of his degree placement at Bristol UWE. His expertise lies in facilitating the disposal and acquisition of industrial premises within the region. Additionally, Tom offers specialised advisory services pertaining to industrial and warehouse development.