Legal & General secures major pre-let bringing new industrial development for Gateshead
LGIM Real Assets (Legal & General) has secured the largest North East industrial pre-let of 2017 at Gateshead’s Follingsby Park, which will see a new 135,000 sq.ft warehouse developed for TOR Coatings.
Planning permission was granted by Gateshead Council in October for the new facility, which will incorporate office space to accommodate the TOR Coating’s European office HQ.
The Birtley-based company, which was established in 1975, is a subsidiary of RPM International Inc., one of the world’s largest coatings groups employing over 14,000 people.
Industrial property specialist, HTA Real Estate, brokered the letting on behalf of LGIM Real Assets’ UK Property Fund, who has owned Follingsby Park for three years.
Matt Jarvis, fund manager at LGIM Real Assets said: “A leading global manufacturer – TOR Coatings is another great addition to Follingbsy Park and a further endorsement of its compelling occupier offer following significant investment and improvements made to the park in recent years.”
Nick Atkinson, director at HTA Real Estate said: “To have a company of TOR’s pedigree make such a significant commitment is tremendous news for Gateshead.
“The industrial market is now at a stage where requirements such as this can only be accommodated by taking a pro-active, forward-thinking approach, which is what we are doing at Follingsby.”
One of the UK’s leading providers of flame-retardant coatings, TOR Coatings will use the new site predominantly for warehousing, which will allow it to increase its manufacturing capacity at its Birtley site.
A 20-year lease has been agreed with TOR and Legal & General say work is due to start on site before the end of December, with completion expected in summer 2018.
Follingsby Park comprises over 1.1m sqft of industrial floor space and has attracted a host of new occupiers over the past 12 months including Argus Fluid Handling Systems, Comau and Max Energy.
Cushman & Wakefield are joint letting agents with HTA Real Estate.