JLR supplier Brose expands operations in Coventry
A MAJOR supplier to Jaguar Land Rover has expanded its operations still further by leasing a 75,000 sq ft industrial unit in Coventry.
Palace Capital, the AIM quoted property investment company, has agreed to lease the unit to Brose UK on an annual rent of £325,000.
Palace, which is focussed on investing in the UK secondary commercial property market outside London, said the initial term of the lease was for five years, with an option to renew for a further five.
Neil Sinclair, managing director of Palace Capital said: “We are delighted to sign a lease agreement with Brose for this large industrial unit. Coventry has a strong local economy and is a buoyant hub for the automobile industry and it is benefitting from the success of Jaguar Land Rover in particular. This lease demonstrates the active management of the portfolio which we are undertaking.”
Brose, which is an existing sub-tenant of the property company, is part of a large German automotive components group that employs 22,000 people worldwide and in 2013 reported turnover of €4.7bn.
In the UK Brose is expanding in Coventry where it is launching new products for its customers, including JLR and Nissan. The company, a shortlisted finalist in this year’s TheBusinessDesk.com’s Business Masters awards, manufactures a range of window regulators and adjuster systems for front and rear seats, with the latter individually configured for every vehicle model.
The industrial unit it has leased is known as Courtauld House and forms part of a complex on the Foleshill Industrial Park, which was acquired by Palace as part of the Sequel portfolio in October 2013. The property was constructed in 1999 and was let previously to Bowater Building Products which recently exercised a break clause in its existing lease. This has resulted in Bowater paying Palace a rent penalty equivalent to four months. As part of the existing lease agreement Bowater is paying out a Schedule of Dilapidations.
In addition to the industrial unit, Palace owns a modern 18,000 sq ft office building on the same site. This office building will become vacant in August 2014, although the current tenant is liable for rent until February 2015. It is currently being refurbished by the existing tenant and marketing to new tenants will begin in early September 2014.
