Distributing demand

Philip Smith presents a regional guide to recent industrial and distribution deals

In Scotland, Graham & Sibbald advised a private investor in the sale of the former Amoco Fabrics factory at the Wester Gourdie Industrial Estate, Dundee. A local furniture company purchased 75,000 sq ft (6,968^m2) with 6.5 acres (2.63ha) of expansion land for over the asking price of £1.1m. On the same estate, confectioner James Keiller has let a 60,000 sq ft (5,574^m2) former sweet factory to AT&T for five years at an undisclosed rent.

In Liverpool, 50,434 sq ft (4,685^m2) was taken by Silvercrest Furniture on Fishwick’s Industrial Estate on a six-year lease at about £85,000 pa. Letting agent J Trevor & Webster acted for W F Fishwick & Sons.

At the Wellcome Foundation’s former regional HQ in Cheshire, nearly a third of the available industrial space on the 300,000 sq ft (27,870^m2) Ranulphe Industrial Estate has been taken up. Glaxo Wellcome has decided to retain 71,476 sq ft (6,640^m2) as a national distribution centre and Medica Packaging has taken 40,000 sq ft (3,716^m2) for packaging pharmaceutical products.

Also, three manufacturers, Endurance, Dynamic Ceramics and J W Plastics, have taken 13,778 sq ft (1,280^m2), 7,368 sq ft (685^m2) and 1,200 sq ft (112^m2), respectively.

According to letting agent Donaldsons, rents between £3 and £4 per sq ft (£32.29 per ^m2 and £43.05 per ^m2) have been achieved. Tony Bridgman, Glaxo Wellcome’s estates manager, says that a further letting of 55,000 sq ft (5,110^m2) should happen by Christmas.

Grant Atkinson of de Havillands reports a general increase in demand in the North West. He puts this down to: “Companies having survived the recession and, with an increase in orders, discovering that they have a need for additional accommodation.”

In south Manchester, de Havillands has let 10,250 sq ft (952^m2) of warehousing to Concordia International on Roundthorn Industrial Estate, Wythenshawe, at £3.95 per sq ft (£42.51 per ^m2). One unit of 10,797 sq ft (1,003^m2) remains unlet.

At Stakehill Industrial Park, Manchester, Christian Salvesen is taking 77,000 sq ft (7,153^m2) of space; Seton Healthcare is taking 108,000 sq ft (10,033^m2); and Aldi is extending its existing facility by 140,000 sq ft (13,006^m2).

Refurbishment at Heywood Distribution Park has reaped dividends, believes Dean Young of Hillier Parker, Manchester. Some 61,450 sq ft (5,574^m2) and 49,100 sq ft (4,645^m2) has been prelet to Sea Route Ferry and J D Sports, respectively. Rents achieved have been between £3 and £3.50 per sq ft (£32.29 and £37.68 per ^m2). Chemical company FEB has also leased 41,200 sq ft (3,827^m2) of storage and warehouse space at Heywood on an annual rent of £91,000.

At Middleton, Greater Manchester, Quorum Estates has let refurbished space to Pandoro Foods on The Linkway. Joint letting agents are Hillier Parker and Richard Ellis.

Demand for space in Runcorn is mainly from local firms, Atkinson notes, but it is beginning to be seen nationally as a cheaper option to Warrington.

Acequip has taken 10,750 sq ft (998^m2) on Whitehouse Industrial Estate, Runcorn, at £38,000 pa. De Havillands has also let 3,030 sq ft (281^m2) to Menardi Cresswell at £4 per sq ft (£43.31 per ^m2) on Fairoak Road at the same estate.

Grand Metropolitan Estates has sublet 186,000 sq ft (17,279^m2) of warehouse space to Constar International UK at Yeadon Airport Industrial Park, Leeds, West Yorkshire. The lease runs for four years at £1.50 per sq ft (£16.11 per ^m2) Grimley advised Grand Met.

Spin-offs from the motor industry continue to provide demand for both property and suitable sites.

Marley Automotive Components paid one of the highest rates for B1, B2 and B8 land in the Midlands at £300,000 an acre (£741,289.84 per ha) for a site in Redditch, Hereford & Worcester.

A total of £1.5m was paid for 5 acres (2.02ha) at SPP International’s Ravensbank Business Park, which is close to the M42 and M40. SPP and Marley have planning permission for an 85,000 sq ft (7,897^m2) production and distribution facility which eventually will supply Rover Group. Oliver Liggins is letting agent on the business park.

Some 50 acres (20.24ha) now remains at Ravensbank following a previous deal of 15 acres (6.07ha) to Heller Machine Tools. On-site work has started and it should open by the end of the year.

At the start of the year, developer Tawnywood secured the first prelet at Bermuda Park, close to junction 3 of the M6, in Nuneaton, Warwickshire. General Motors subsidiary Delco Classics agreed to take up to 160,000 sq ft (14,864^m2) of space on, what is believed to be, a 25-year lease for a manufacturing facility. Initially, the deal is for 80,000 sq ft (7,432^m2) but there is an option to double this in the first year. The rent is rumoured to be about £4 per sq ft (£43.06 per ^m2) and Tawnywood is advised by Rumsey & Partners.

The 129 acre (52.2ha) distribution and industrial park was kickstarted with land sales to distributor Christian Salvesen and Electrocomponents.

The former occupies 65,000 sq ft (6,038^m2) on 10.65 acres (4.3ha) with consent to expand to 120,000 sq ft (11,148^m2).

Electrocomponents is building a 290,000 sq ft (26,941^m2) high-bay distribution facility on its 26 acre (10.52ha) site.

Last month, P&O Properties announced a 160,000 sq ft (14,864^m2) design-and-build for P&O Distribution at Middlemarch Business Park, Coventry. A warehousing and distribution facility for the central Midlands will be built.

In Wolverhampton, a 6 acre (2.43ha) site is being speculatively developed to provide a total of 115,000 sq ft (10,684^m2) at Key Industrial Park, Neachells Way. This will be available in spring 1996. Joint agents on the scheme are Richard Ellis and Bulleys.

Along the Black Country New Road, top High Street catalogue shopping outlet Index has taken a 225,000 sq ft (20,903^m2) prelet on a 13 acre (5.26ha) site, part of Parkway North, near the Black Country Corporation’s Automotive Component Park.

Construction started last month and the £14m project, by Barberry House Properties and the BCDC, will become Index’s new national distribution centre. King Sturge and Drivers Jonas acted for Index and Grimley represented Barberry House Properties.

In Nottingham, Abrasive Foam has completed the two-stage purchase of 90,000 sq ft (8,362^m2) of warehousing, factory space and offices at Alfreton, Nottinghamshire, from Bunzl Plastics.

The 10m high-bay is on a 5.5 acre (2.23ha) site which enables Abrasive Foam to resite and expand, says Bryan Huckerby of letting agent Connell Wilson. Hillier Parker also acted on Bunzl Plastics’ behalf.

Another player in the automotive industry, Jervis B Webb, which manufactures conveyor systems, has taken 56,000 sq ft (5,203^m2) of warehouse space at Mount Farm, Milton Keynes. Connell Wilson was letting agent.

Connell Wilson has also, with joint agent North Rae Sanders, let 102,500 sq ft (9,522^m2) at a passing rent of £5 per sq ft (£53.82 per ^m2) to Christian Salvesen on Mercury Drive at Brackmills, Northampton.

Argos Distribution has taken 381,000 sq ft (35,395^m2) on a prelet at Pipps Hill, Basildon, Essex, on a 25-year lease at £4.17 per sq ft (£44.89 per ^m2). The 24 acre (9.71ha) site was acquired originally by Standard Life, which forward- funded developer Gazeley Properties at 7.25%.

Also in Essex, AXA Equity & Law and developer Wrenbridge prelet 22,000 sq ft (2,036^m2) of warehousing to Royal Mail at the Dukes Park Industrial Estate, Chelmsford. King Sturge & Co and Fenn Wright Spurlings achieved £6 per sq ft (£64.59 per ^m2) and a 20-year lease was signed with a break at the 15th year. Nelson Bakewell represented Royal Mail Property Holdings.

Weatherall, Green & Smith achieved a rent of £4.50 per sq ft (£48.44 per ^m2), letting two 74,000 sq ft (6,874^m2) units in Perivale, Ealing, to fashion retailer Monsoon in February.

The 240,000 sq ft (22,296^m2) Abbey Road Industrial Park, London NW10, continues to see letting action. DHL International has taken Parklink, a 16,000 sq ft (1,486^m2) development on phase three of the park in August for its courier and distribution services for north-west London.

DHL took a 15-year lease at a rent rising to £112,000 pa in the fourth year with a six-month initial rent-free period. Jones Lang Wootton, acting for Abbey Road landlord Commercial Union Properties, has let Unit 3 on phase one to National Packaging Group at £58,500 pa, on a new 10-year lease with six months rent-free.

Occupiers already at Abbey Road include Spicers, Mills & Allen and the DOE’s Central Office of Information. Grimley acted for National Packaging Group.

In August, Torday & Carlisle sublet 50,000 sq ft (4,646^m2) of warehousing and 7,400 sq ft (687^m2) of ancillary office space to Euro Car Parts on Fulton Road in Wembley, north London. The new tenant signed a 10.5-year FRI lease at £4.50 per sq ft (£48.42 per ^m2). Colliers Erdman Lewis and Grant & Partners acted for Torday & Carlisle and Ramagge acted for Euro Car Parts.

Enfield has seen two 100,000 sq ft-plus (9,290^m2) lettings this year. A 139,000 sq ft (129,131^m2) warehouse, to be developed by J S Developments, was prelet to GLS Fairway at Mollison Avenue, Enfield. A rent of £5.25 per sq ft (£56.51 per ^m2) was agreed on a 25-year lease. Pickfords took 210,000 sq ft (19,509^m2) on Southbury Road, also at £5.25 per sq ft (£56.51 per ^m2), on a 15-year lease.

In July, Barclays Bank subsidiary Imry announced what it claimed to be the largest letting ever to take place in Worthing, West Sussex, of some 191,500 sq ft (17,790^m2) at Downlands Business Park. Daewoo Motor Co has taken a 17-year lease, but other terms are confidential. Some 133,000 sq ft (12,356^m2) of office and warehouse space is standing and a further 58,500 sq ft (5,435^m2) should be completed in under a year. The building contract is worth £3m and Daewoo will spend £4.5m more on fitting out. Imry was advised by Tod Miller Thomas and Daewoo was represented by Stiles Harold Williams.

Camino Park in Crawley, West Sussex, has gained its first tenant. Northern Foods is taking a new 28,000 sq ft (2,601^m2) warehouse for its Kara Foods subsidiary on the 23 acre (9.3ha) site. Development partners Hunting Gate Developments and AMP Asset Management bought the site earlier this year and will shortly commence work on building its spine road. Northern Foods took a 20-year lease at approximately £6.75 per sq ft (£72.66 per ^m2) on a 1.76 acre (0.71ha) site fronting Gatwick Road. It will be completed in January. Johns Commercial and Cluttons are letting agents and Connell Wilson acted for Northern Foods.

Some 8,816 sq ft (819^m2) on Church Road Industrial Estate in Crawley has been let by Jones Lang Wootton and Glenn Larner to International Logistics. The space was taken on a 10-year lease, with a mutual option to break at the end of year five, at an initial rent of £48,500 pa. Quoting rents on remaining units on the estate, from 8,580 sq ft (797^m2) to 26,000 sq ft (2,415^m2) in size, are from £3.50 per sq ft (£37.65 per ^m2).

Claimed to be the largest mixed-use business park on the ^m25, Crossways at Dartford, Kent, has had seven new tenants, occupying more than 100,000 sq ft (9,290^m2) of space. Occupiers at Blue Circle Properties’ development include Asda, Fyffes and Racal and Transco, Comet and ABB Transportation are among their new neighbours. Joint letting agents are Caxtons and Erdman Lewis (in receivership).

Caxtons has also let 68,000 sq ft (6,318^m2) of warehousing to Pinnacle Records at the nearby Swanley Cross. Land Securities’ development is at junction 3 of the ^m25.

The partnership between developer Kingspark and Standard Life continues successfully with a prelet for 50,000 sq ft (4,645^m2) of warehousing at Suttons Business Park, Reading, Berkshire, and for 60,000 sq ft (5,574^m2) at Kingsland Business Park, Basingstoke, Hampshire.

At Reading, Oracle signed a 15-year lease at £6.68 per sq ft (£71.91 per ^m2) and Arjo Wiggins is now occupying 60,000 sq ft (5,574^m2) at Kingsland on a 25-year lease at £5.67 per sq ft (£61.03 per ^m2).

Hygiene product distributor, Redland Hygiene, has expanded and moved to Reading from Twyford, taking 14,500 sq ft (1,347^m2) of space at Portman Road. Connell Wilson sold the property, for Great Mills Retail, for around £300,000.

The Acre Friendly Society has just achieved £6 per sq ft (£64.59 per ^m2) on a factory in Banbury, Oxfordshire. City Truck Sales has taken the 6,650 sq ft (690^m2) unit on Acre Estate, Wildmere Road, for two years. Leighton Goldhill and Savills advised Acre Friendly Society and Underwoods Commercial acted for City Truck Sales.

In Bristol, Guardian Properties is forward-funding One Portbury West, a 85,900 sq ft (7,980^m2) industrial buiding for £5.5m. It is being developed by Bryant Properties and The Bristol Port Co. Grimley advised Guardian; the developers’ agents are DTZ Debenham Thorpe and Hartnell Taylor Cook. And at Armstrong Way, a distribution centre of 250,000 sq ft (23,225^m2), let to Sainsbury’s at £1m pa, has been sold. The private investor for £12m was advised by Donaldsons.

At Chepstow, Gloucestershire, some 73,000 sq ft (6,770^m2) of distribution space has been prelet to Christian Salvesen at Newhouse Park. East Mon Industrial Holdings has achieved a £300,000 pa rent, equating to £4.25 per sq ft (£45.75 per ^m2), on the property which should be occupied this month. Colliers Erdman Lewis and King Sturge advised East Mon and Healey & Baker represented Christian Salvesen.

In Wales, at Spytty Road, Newport, Gwent, the 134,00 sq ft (12,449^m2) former GEC Marconi premises, on 10.4 acres (4.21ha), were sold to Empress Car Sales for a reported £1.25m. King Sturge and Hutchings & Thomas acted for vendor Safegold Properties. And at Deeside Industrial Park, near Queensferry, Universities’ Superannuation Scheme paid the Welsh Development Agency £13.5m for 670,000 sq ft (62,243^m2) on 110 acres (44.52ha) off a 7.6% yield.