Thursday 27th Oct 2016 - Logistics Manager

Playing a trump card

St Paul’s Developments is playing its trump card at its 85 acre Brookfields Park development in Yorkshire.

In its latest marketing push it reminds potential occupiers that the last two plots of 4.5 and 10 acres at the warehouse and office site in the Dearne Valley, each carry coveted Enterprise Zone designation, giving businesses 100 per cent tax allowance against virtual freehold purchase, legitimately offsetting corporation tax liabilities.

Peter Whiteley of Knight Frank said: “The tax incentives available through its special Enterprise Zone designation, as allocated by the Secretary of State for the Environment, will essentially wipe out 100 per cent of the eligible property costs against corporation tax for a corporate purchaser, which is a potentially vast saving. This alone marks the site as one of the most cost effective business parks in the country.

“Tenants can also capitalise on the project, subject to covenant strength and specific lease terms, as landlords of Brookfields Park property can claim the available tax allowances to maximise revenues. They will pass some of those benefits back to the leaseholder in the form of rent-free periods or cash allowances worth maybe two or three times more than lease incentives offered under normal circumstances. Any unit or build on the site has its tax incentive status protected by the developers for a further ten years.”

The site has so far delivered 120,000 sq ft of space on a design and build basis to Garnett Dickinson Digital, while two large distribution warehouses of 400,000 and 700,000 sq ft each have been pre-let to Next and a speculatively built 200,000 sq ft unit has been let to Maplin Electronics.

Knight Frank and Lambert Smith Hampton are marketing the scheme on behalf of St Paul’s Developments and Tritax.