Tritax £81.8M Forward Funding Kicks Off 36M SF Battle Of The Giants
Tritax Big Box REIT has agreed the off-market £81.8M forward funding of an 844K SF Eddie Stobart distribution centre in Corby, which will be the first in an upcoming series of huge Midlands industrial developments.
The Stobart facility is the first pre-let at the 5M SF Midlands Logistics Park, Corby, developed by Mulberry and Frogmore.
The Midlands Logistics Park has a 500-metre rail siding and yard, allowing potential future connection to the rail network.
The move fires the starting pistol in the latest 36.5M SF phase in the competitive Midlands meda-shed sites market. The pre-let gives the Midlands Logistics Park a head start over larger rivals including Segro and Roxhill's 6M SF East Midlands Gateway at Kegworth, whilst Gazeley's plans for a 4.5M SF extension at Magna Park have become mired in local planning problems.
Three further mega-shed sites are in early stages with the Planning Inspectorate, set to move forward imminently. Roxhill's 5M SF Northampton Gateway — a near neighbour of the Corby site — is expected to be formally submitted for planning this month. A formal planning application for Ashfield Land's 8M SF Rail Central site at Bilsworth, Northamptonshire, is expected late this spring.
Four Ashes' 8M SF West Midlands Interchange near Cannock, close to Junction 12 of the M6 motorway, is also expected to be formally submitted to the Planning Inspectorate this quarter.
Construction work on the Stobart unit will be completed late this year. Stobart will take 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.
"This is the first development in a new East Midlands logistics park south of Corby, which is benefitting from recent significant upgrades to the adjacent road network and offers the potential for rail connectivity," Tritax partner Colin Godfrey said.