Johnson Fellows ties up HMV and Hermes deals at Merlin Park
JOHNSON Fellows has successfully retained 100% occupancy at a Birmingham industrial estate following negotiations with its existing tenants.
The Birmingham-based chartered surveying firm has worked with home delivery courier Hermes and entertainment retailer HMV – both existing tenants at Merlin Park in Erdington – to reorganise their occupation on site to better suit both operations’ on-going property needs.
HMV has consolidated its distribution from two warehouses on the estate into the single occupancy of a 45,000 sq ft unit. HMV’s shop portfolio has dramatically reduced since the company entered administration in January 2013. The company has subsequently been re-aligned and now Merlin Park forms its sole distribution facility, feeding its 90 retained retail outlets.
In contrast, Hermes has experienced rapid growth in its parcel deliveries operation – prompted by the increased online sales growth across the UK.
The firm had served a valid break notice on its existing premises but, following detailed negotiations with both Hermes and HMV, Johnson Fellows negotiated for the courier to remain on site and take additional space released by HMV under new ten-year leases.
Johnson Fellows also advised the landlords, Helix Property Investors, on the necessary refurbishments required by Hermes to increase their occupation on the estate.
Mike Price, partner at Johnson Fellows and head of the industrial team,
said: “We are delighted that our negotiations have allowed both Hermes and HMV to remain at Merlin Park.
“They are two well-known companies but with very different property needs. Accommodating both of their requirements on the estate has been a complex, although worthwhile, process. Our client will benefit significantly from a stable revenue source which has increased the investment value of the whole estate.
“At one stage it looked like both Hermes and HMV would leave and as a consequence nearly 60% of the estate could have been empty leaving our client significantly exposed to high holding costs including void rates.”
