St Modwen has submitted plans to build four industrial units totalling 80,000 sq ft on the former Rolls-Royce site at Hillington Estate in Glasgow, branded Pegasus Business Park.
The midlands-based developer submitted a planning application to Renfrewshire council, for a construction start date in the summer.
“We don’t believe there will be any major issues. We are replacing old employment with new employment,” explained Steven Knowles, development manager at St Modwen. The units are expected to be completed by the end of the year and Knowles anticipates rents to be £5 per sq ft.
“This is a strong market. There has been a definite improvement in rents,” Knowles claimed.
St Modwen has also started work on the first phase of the main 800,000 sq ft site, where it is refurbishing two blocks of around 130,000 sq ft for industrial and distribution occupiers. “We are already talking to somebody in the market for 45,000 sq ft,” said Knowles. Rents will be around £2 per sq ft.
Knowles expects most of the demand for the refurbished stock to be in the 20,000-60,000 sq ft range, and adds that the developer is prepared to be flexible on lease terms. The first phase is expected to be ready in July this year.
Colliers CRE is representing St Modwen.
References: EGi News 14/02/06
