Tritax Big Box REIT has exchanged contracts to provide forward funding, subject to planning, for the development of a new regional distribution centre at Midlands Logistics Park, Corby, Northamptonshire.
The development asset is prelet to UK logistics business Eddie Stobart, a wholly owned subsidiary of ESLL Group, which will act as guarantor. The development represents an investment of £81.8m.
Midlands Logistics Park (MLP) is located to the south of Corby in the East Midlands, with direct access to the A43 dual carriageway, which has recently been upgraded and now provides significantly improved links to the M1 southbound, the M6 and the A1(M).
MLP is capable of accommodating approximately 2.6m sq ft of logistics space, with outline planning permission granted. Eddie Stobart is the first tenant to commit to a new facility at MLP, which has a 500m rail siding and yard, allowing potential future connection to the railway network.
Corby has attracted a number of major occupiers, including British Car Auctions, Morrisons, Matalan, Smyths Toys, Staples and Eddie Stobart’s iForce business.
The property will be purpose built to a high specification, with a gross internal floor area of 844,000 sq ft and an eaves height of 18m, together with extensive parking.
Upon practical completion of the construction, targeted for the end of this year, the property will be leased to Eddie Stobart on a new 20-year lease, subject to five yearly upward-only rent reviews indexed to the retail price index, with a cap and collar.
The first rent review is due in 2023. From completion of the land purchase, and during the construction phase, the company will receive an income return equivalent to the rent.
Colin Godfrey, partner at Tritax, said: “We are very pleased to be investing in this new regional distribution centre prelet to Eddie Stobart, an established 3PL operator with long-standing customer relationships. This is the first development in a new East Midlands logistics park south of Corby, which is benefiting from recent significant upgrades to the adjacent road network and offers the potential for rail connectivity.”
To send feedback, e-mail amber.rolt@egi.co.uk or tweet @AmberRoltEG or @estatesgazette
