Sunday 23rd Oct 2016 - Logistics Manager

236,806 sq ft pre let in Rugby for retailer

An as-yet-unidentified major international retailer has snapped up a 236,806 sq ft warehouse in a pre-let deal at Roxhill and SEGRO’s Rugby Gateway scheme in the Midlands.

This is the first deal at the 125 acre scheme, which can accommodate up to 1.8 million sq ft and will be let on a pre-let basis with units ranging form 200,000 sq ft to 925,000 sq ft.

It is located in the Golden Triangle just off Junction 1 of the M6 motorway. Infrastructure works are underway and are expected to be completed in this summer.

Warehouse space is at premium in the Midlands and Richard Meering of CBRE, which is jointly letting the scheme with Cushman & Wakefield says the focus to acquire new space remains very much on design and build and those developers with oven ready sites such as Rugby Gateway will benefit substantially from the lack of availability.

Commenting in SEGRO’s first quarter results, where the announcement of the letting was made, David Sleath, chief executive, said: “Occupier demand for new space continues to improve in most markets and this has been reflected in increased rental commitments, particularly for pre-let developments, compared with the first quarter of 2013.

“We have taken advantage of the stronger market conditions to accelerate our development programme, adding more than 50 per cent to both the number of projects and space to be built since the start of the year.”

SEGRO recently announced speculative development schemes in Stockley Close and Park Royal.