UK Commercial Property REIT has secured Aldi logistics partner Armstrong Logistics for a 377,070 sq ft facility at Magna Park in Lutterworth, Leicestershire.
The distribution company has signed a 15.5-year lease at the REIT’s XDOCK377 warehouse, paying £6.50 per sq ft with open-market rent reviews. The deal will add £2.45m of annualised income to UKCM’s rent roll, after incentives.
UKCM said its void had shrunk by 35.2% as a result of the deal, with portfolio void rate by ERV reducing to 6.5%, from 10% in June.
Other occupiers at Magna Park include DHL, Asda, Wayfair, Lidl and Eddie Stobart.
Will Fulton, lead manager of UKCM at Aberdeen Standard Investments, said: “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.
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
