M7 Real Estate has completed five new lettings spanning circa 50,500 sq ft at the Air Cargo Centre in Castle Donington, Leicestershire, on behalf of an institutional investor.
Lettings with DHL, HGV Direct and Norsk have set a new record rent for the asset of £7.95 per sq ft, an increase on the previous average passing rent of around £6.50 per sq ft. The WAULT of the property has increased to five years.
The 142,000 sq ft property was bought as part of the “M” portfolio from Commercial Estates Group in October.
The property, adjacent to East Midlands Airport, had a vacancy rate of 31.4% across four units totalling around 44,500 sq ft, with a further two units totalling circa 6,000 sq ft becoming vacant shortly after.
M7 undertook an asset management programme to refurbish space and convert 10,600 sq ft of office space to warehousing, as well as improving the landscaping around the units.
James Chasen, asset manager at M7, said: “In just six months we have turned around the performance of this asset, leasing all the vacant space to achieve 100% occupancy on what is a unique asset for this strategy.”
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
