SEGRO and Roxhill have secured the first major deal at their SEGRO Logistics Park East Midlands Gateway scheme with a pre-let to Nestlé, Property Week can reveal.
Via third-party logistics operator XPO Logistics, Nestlé is understood to have agreed to take 600,000 sq ft at the 700-acre site (pictured).
The Swiss food and drink giant will relocate from its UK base in Bardon, Leicestershire, upon completion of the new distribution centre.
A source familiar with the deal said it would help kickstart other lettings. East Midlands Gateway has planning consent for up to 6m sq ft of logistics space and incorporates a 50-acre strategic rail freight interchange, capable of handling up to 16 775-metre freight trains per day.
“This will really get things moving and is a vote of confidence in the scheme,” he said. “There’s plenty of demand from companies in need of state-of-the-art logistics space, and East Midlands Gateway, being next to the motorway, train links and the airport, is already proving to be a draw for potential occupiers like Nestlé.”
SEGRO struck a partnership with Roxhill in February last year that could result in the development of more than 1m sq m (10.8m sq ft) of big-box warehousing over 10 years. At the time, chief executive David Sleath said the deal would provide “a clear path for us to achieve the scale we desire in the attractive UK big-box logistics market”.
Since then the company has exercised two right-to-buy options including one to fund the development of East Midlands Gateway.
In full-year results earlier this year, SEGRO said it would approach potential tenants in order to secure pre-lets during 2017. Infrastructure works are under way at the site, and it is expected to be ready for occupation in the third quarter of next year.
This week, a spokeswoman for SEGRO said: “We don’t comment on speculation on potential deals but work at the 6m sq ft SEGRO Logistics Park East Midlands Gateway is progressing well and the first development platforms are available for pre-lets.
“Its location offers road access to the whole of the UK and the strategic rail freight interchange will connect the site to the Castle Donington freight line, providing direct access to the major UK ports, the Channel Tunnel and other UK air-freight interchanges.”
East Midlands Gateway is located next to the M1 motorway and East Midlands International Airport, the UK’s second-largest cargo airport.
Burbage Realty, CBRE and Savills are acting as joint agents on the scheme.
1 April 2016
18 February 2016