Warehouse development site released due to regear
Developer Rotherhill has completed regear of a lease on a facility in Shepstead, Leicestershire which has allowed it to release land for a midbox warehouse development.
By Liza Helps, Property Editor Logistics Matters
The site has come available after aerospace engineering company Meggitt secured a further 11.5 year lease on its 48,845 ft2 Gelders Hall Road facility which stands on a 3.8 acre site.
The development plot could accommodate a new warehsoue of some 30,000 ft2.
Meggitt has occupied the site on Gelders Hall Road since its construction in 1987 (previously as Cobham Composites). The original agreement made in February 2022 was for a 3.25-year leaseback in order to allow Meggitt to relocate to a nearby site.
Following the takeover of Meggitt by US manufacturer Parker Hannifin Corporation in September 2022, Rotherhill agreed terms for a lease re-gear of up to 11.5 years.
Rotherhill associate director Ed Jeffrey, said: “The new agreement enables us to bring forward land for future development, whilst improving the rental return on the existing buildings and extending the duration of income for up to 11.5 years from an excellent covenant.
“It has been satisfying to develop a long-term relationship with Meggitt, working flexibly to accommodate their requirements whilst generating value for our investor partner.”
