Legal & General Property (L&G) announces, on behalf of its UK Property Fund, that it has completed three lettings in three months at Follingsby Park in Gateshead, Newcastle. A total of 26,641 sq ft of industrial space has been let with the latest tenant, Ashtead Plant Hire, taking occupation of Unit 18D, which extends to 6,648 sq ft.
The latest deal follows a successful letting period, with one lease agreement secured per month since September. The first was with Transvalair who took Unit 18C, extending to 7,125 sq ft, on a six year lease and the second with Shred-It, taking a 10 year lease in Unit 16E which extends to 12,909 sq ft. These latest deals bring the total number of units let in 2015 to six at a combined floor area of 88,700 sq ft.
Since purchasing the estate in late 2014, L&G has undertaken an extensive refurbishment programme on the asset, and has spent a lot of time liaising with current tenants to ensure their occupational needs continue to be met. The occupancy rates now stand at over 94% by floor area, with only five units, ranging from 5,574 sq ft to 32,726 sq ft, available. Current high levels of demand and lack of supply has had a positive effect on rents with incentives also lessening as a result. Quoting rents now stand at or in excess of £5.50 per sq ft.
Such is the confidence in the market at Follingsby Park, speculative developments of between 40,000 sq ft and 80,000 sq ft are being explored.
Matt Jarvis, Fund Manager of the Legal & General UK Property Fund, commented: “These lettings are an excellent result for the Fund and are testament to our ability to create a high-quality asset that is suitable for our occupiers’ requirements.”
Emma Conville of Cushman & Wakefield, joint leasing agents on the estate, commented “It is an exciting time to be associated with Follingsby Park which continues to attract significant occupier demand due to the quality of buildings and ease of access to the major regional road network. Modern well located stock like this remains in short supply in the North East and we already have good interest in new build opportunities from occupiers”.
Cushman & Wakefield and HTA Real Estate are joint leasing agents at Follingsby Park. Jones Lang LaSalle act as Strategic Asset Manager at the property on behalf of L&G.