Tulchan Developments, advised by Montagu Evans, has agreed the pre-let of a new facility for Co-operative Group at Link Park, Newhouse, on the M8 east of Glasgow. The project will be brought forward in a joint venture with landowner Fusion Assets, the arm’s length property development and regeneration company of North Lanarkshire Council. Forward funding for the c.£12m facility is being provided by an overseas investor.
Co-op has taken 47,565 sq ft distribution facility with enhanced specification and additional service yard and HGV parking on an 18-year lease at £12.15 per sq ft. Located next to its main 500,000 sq ft Glasgow distribution centre, construction has now started with completion planned for October 2022.
Fusion Assets acquired the seven-acre brownfield site in 2014 and completed a package of enabling works funded by the Scottish Government through the North Lanarkshire Vacant and Derelict Land Programme to create a fully serviced and development ready site. A procurement exercise to find the right development partner was caried out last year to allow the occupier to have the facility available in 2022.
Gavin Robertson, Director at Tulchan Developments, said: ”We’re pleased to have secured a high-quality pre-let for this strategic site and are on track for completion later this year. This is the second unit we’ve been involved in for Co-op with Newhouse providing a key part of their overall logistics network in Scotland going forward.’’
Bryce Stewart, Partner at Montagu Evans, said: ”With an increasing shortage of industrial and logistics stock across Scotland, this will be the first of many pre-lets over the coming months as demand for space continues to grow.’’
Iain Davidson, Director at Colliers, which advised Fusion Assets, said: “This was a multi-layered deal brought forward by a number of parties working together in close cooperation. The new facility will help boost the local economy as well as providing an important part of Co-op’s distribution network in Scotland.”
Murray Collins, Managing Director of Fusion Assets, said: “I am delighted that the initial public sector investment in acquiring and remediating the site at Link Park, Newhouse, has levered in additional investment from an overseas investor and secured Co-op as a tenant. The new Co-op facility will provide additional job opportunities and further embed a large and important employer into the local area.”
Tim Ellis of Co-Op Logistics added: ‘’We are delighted that work has started on the bespoke de-kit facility adjacent to our depot off the M8 outside Glasgow at Newhouse. The existing depot already serves around 600 Co-op stores and this new facility strengthens our core logistics operation in North Lanarkshire. Despite the challenging times, the Development team and their contractor are on programme to deliver the unit this autumn which in turn allows us to upgrade part of the existing depot. This investment is key to the development of our overall network as part of our commitment to Scotland.’’
Montagu Evans advised Tulchan Developments on the leasing and forward funding. Colliers advised Fusion Assets. Matthews & Goodman advised Co-op on the letting. Lismore acted for the overseas investor on the forward funding.