UKCM secures logistics letting at Magna Park, Lutterworth
UK Commercial Property REIT Limited (UKCM), which is managed and advised by Aberdeen Standard Investments and owns a diversified portfolio of UK commercial property, has fully let its 377,070 sq ft XDOCK377 logistics unit at Magna Park in Lutterworth to Armstrong Logistics, a pan-European distribution company.
As a result of the lease, UKCM’s portfolio void rate by ERV has reduced to 6.5 per cent from 10 per cent at the 30 June 2020.
Armstrong Logistics has signed a 15.5-year lease with open market rent reviews at GBP6.50 per sq ft, in line with ERV, which will add a further GBP2.45 million of annualised income to the company’s rent roll after incentives.
Armstrong Logistics is an approved UK logistics partner to ALDI, delivering around one third of the ambient goods on ALDI’s store shelves and working with over 100 of ALDI’s key suppliers across the world. It already operates from another unit in Magna Park and the occupation of XDOCK377 is essential to Armstrong Logistics’ business in order to satisfy continued growth in ALDI’s UK business.
XDOCK377 is a fully refurbished Grade A cross-dock distribution warehouse located in Magna Park, which is the largest dedicated distribution park in Europe. Situated in the heart of the Golden Triangle, Magna Park provides access to 85 per cent of the UK population within a 4.5 hour HGV drive due to its close proximity to the M1, M6 and M69. Other occupiers at the site include DHL, Asda, Wayfair, Lidl and Eddie Stobart.
Will Fulton, Lead Manager of UKCM at Aberdeen Standard Investments, says: “This is a highly significant letting for UKCM in that it reduces the Company’s void rate by some 35% and will deliver reliable long term income to our investors from a highly reputable counter party that is the key logistics partner to one of Europe’s most prolific retail success stories.”
UKCM was advised by CBRE, Savills and Burbage Realty.