Schroder REIT plans to boost the warehouse space at its Siemens-let industrial park in Wiltshire by a third.
The REIT is mapping out a fresh masterplan for its £27.5m Langley Park Industrial Estate in Chippenham, which it bought from MAS REI in late 2020 for £19.3m. The site has 400,000 sq ft of warehouse and office accommodation across 28 acres, and SREIT has submitted a pre-planning application for a further 130,000 sq ft of warehouse space.
A rent review has been agreed with Siemens Mobility, the anchor tenant, at a 27% increase to £4.66 per sq ft, or £1.2m a year – making Siemens the REIT’s second largest tenant. Elsewhere on the site, a new 10-year lease renewal has been agreed with IXYS UK Westcode, the UK subsidiary of semi-conductor manufacturer Littelfuse.
Fund manager Nick Montgomery told EG that existing tenants could be lined up for the new space, but that market supply meant a speculative development was still a possibility.
“Both Siemens and other tenants on the estate have expressed some interest in taking more space, so there is a possibility that at least some of that space could be prelet,” he said. “[But] there is a scarcity, particularly near the town centre, of good quality, small units. If we get planning, we may well press the button and just spec it.”
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