Headlam Group plc, the UK’s leading floor coverings distributor, has agreed terms to lease a new state-of-the-art 65,000 sq ft regional distribution centre in the North East of England.
The new facility will help the Group to better support operations, customers, and the business’ future growth and will serve Headlam customers across the region, with a new enlarged trade counter supported by more parking. Existing sites at Newcastle and LGS will be closed, including the two trade counters at those sites.
All Headlam employees across both sites will move to the new single Centralway65 facility over July and August as the site becomes fully operational.
Boasting a minimum eaves height of 10.6m, a 65-meter dedicated yard with dock and level access loading, together with several sustainable features, the facility will help Headlam continue to improve service levels to its independent retailers and contractor customers across the North of England.
The new distribution centre opening is the latest evidence of progress with Headlam’s “core customer strategy” announced in March 2026 to focus on its core independent retailers and contractors, while also reducing its site footprint, as the business targets a return to profitability in 2027.
Rob Barclay, CEO 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.”
Located in the heart of Team Valley – the North East’s premium business estate – Centralway 65 is the largest single speculative industrial project to rise from the estate’s ground in recent years. UK Land Estates built the facility to address the shortage of high-quality warehousing space in the region and company chiefs are delighted that Headlam Group are continuing to invest in the estate.
David Gibbs, Property Director at UK Land Estates, said: “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.”
Commercial property specialists Naylors acted on behalf of UK Land Estates to secure the letting.
Keith Stewart, Partner at Naylors, said: “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 Group, this was the right building at the right time as the business continues to invest in and future-proof its operational facilities.”