IM Properties’ speculative development gamble pays off following 169,000 sq ft let

DEVELOPER IM Properties has completed the letting of its second speculatively developed industrial unit at Birch Coppice Business Park near Tamworth.
 
The 169,000 sq ft Unit 2 has been let to DAU Draexlmaier Automotive UK, a supplier of electrical components to the automotive industry, on a 15 year lease at £5.75 per square foot. 

The company will be using its new premises to service an existing contact with car maker Jaguar Land Rover, emphasising yet again how important JLR’s success is to the regional industrial property market.
 
IM Properties was the first developer locally to begin speculative development of distribution units over 100,000 sq ft since the start of the economic downturn in 2008, when it began construction of two logistics units totalling 334,500 sq ft in July 2013.

It gambled on there being enough demand in a ‘big sheds’ market lacking supply for it not to be too risky a venture. 

And the gamble has paid off as now both units have now been let prior to their completion, with a deal having already been agreed with distribution and outsourcing specialist, Bunzl UK for the 165,600 sq ft Unit 1.
 
Kevin Ashfield of IM Properties said: “The deal to Draexlmaier was signed within seven days of agreeing heads of terms, emphasising the lack of available stock and the need for occupiers to act quickly to source their property requirements.
 
“We are extremely pleased to have let both units prior to their practical completion, which highlights the strength of Birch Coppice as a location, IM Properties’ reputation for delivering high quality, flexible industrial developments and is further evidence of the improving economic sentiment.”
 
Birch Coppice Business Park is located close to the M42 in North Warwickshire and is home to occupiers including Ocado, UPS, Volkswagen Group and Euro Car Parts.
 
A Draexlmaier spokesperson, said: “We are delighted to have secured our new facility at Birch Coppice. This new premises will be integral to us servicing JLR and the location works perfectly for us.”