Manufacturer commits to Leicestershire with new property deal
Midlands-based property developer Rotherhill has announced the completion of a lease re-gear for UK aerospace manufacturer Meggitt’s facility in Shepshed, Leicestershire.
Meggitt has been at the 49,000 sq ft site on Gelders Hall Road since it was built in 1987 (previously as Cobham Composites).
The original agreement made in February 2022 was for a 3.25-year leaseback in order to allow Meggitt to relocate to a nearby site.
Following the takeover of Meggitt by US manufacturer Parker Hannifin Corporation in September 2022, Rotherhill agreed terms for a lease re-gear of up to 11-and-a-half-years years. The terms of the lease re-gear also allowed for the release of development land, enabling a future industrial development of around 30,000 sq ft.
Ed Jeffrey, associate director at Rotherhill, said: “We are delighted to have completed the lease re-gear with Meggitt and that they have chosen to commit to the location for the long term. The new agreement enables us to bring forward land for future development, whilst improving the rental return on the existing buildings and extending the duration of income for up to 11.5 years from an excellent covenant.
“It has been satisfying to develop a long-term relationship with Meggitt, working flexibly to accommodate their requirements whilst generating value for our investor partner.”
Rotherhill director, Paul Bagshaw, added: “Our experience and sector knowledge allows us to take on investment and redevelopment opportunities with short term income. By proactively working with the current occupiers, we’ve been able to meet their requirements and achieve a positive and favourable outcome for all involved.”