Saints Transport, based at Parr’s Yard, Heathrow, has seen its rent for the 2.2 acre open storage site rise 68 per cent.
The renegotiated deal sees the occupier take a new 15 year lease on the site at a headline rent of £500,000 a year equating to £5.05 per sq ft with a ten year mutual break.
Parr’s Yard is located in the middle of the designated Compulsory Purchase area for the new Heathrow expansion and the deal has been negotiated to maximise the exit value for the landlord fund that owns it.
M7 Real Estate negotiated the deal.
Dan Roberts, Senior Asset Manager at M7, said: “Over the past few years Thames Valley and the Western Corridor has seen record highs in demand for commercial space, but all -time lows for supply.
“It has been increasingly difficult for occupiers to find suitable open storage, particularly in the South East, and with the continued demand for “last mile” access to our cities these sites are becoming increasingly valuable for the logistics operator.
“We were extremely happy to retain Saints at this site for the foreseeable future, which remains under threat from the proposed Heathrow expansion,” he added.