European headquarters secured by manufacturer
Warehouse REIT, the urban and ‘last-mile’ industrial warehouse investor has completed a 38,600 sq ft lease in Rugby.
At Valley Point, the 20 year lease to PWR Europe for its European headquarters has been secured with no break.
The lease will generate a rent of £332,400 per annum, equating to around £8.60 per sq ft, 11.0% above the 31 March 2022 ERV, and is subject to 5 yearly upward only rent reviews to the higher of open market rent or indexation.
The letting follows a substantial refurbishment programme which included LED lighting and heating upgrades to , improving the property’s EPC rating to an A.
The developer and manufacturer of cooling solutions to a range of sectors such as motorsport, renewable energy, and aerospace will now be located on the Swift Valley Industrial Estate.
Paul Makin, investment director of Tilstone Partners, the investment advisor to Warehouse REIT, commented: “As our continued strong leasing activity demonstrates, the UK warehouse occupier market remains in robust health, reflecting the breadth of tenant demand in a market beset by structural undersupply. Where rents remain affordable, particularly in the regions where the Company’s portfolio is concentrated, there is no sign of this supply-demand imbalance easing.
“In particular, we are increasingly seeing properties with the highest sustainability credentials experiencing strong demand and potentially starting to command rental premiums, as businesses accelerate their own green agendas. The Company has a near-term pipeline of similar value-add initiatives which will enhance the portfolio income profile whilst further reducing vacancy.”
