Logicor welcomes Taylor Wimpey to the UK portfolio

Background

Located close to Peterborough city centre and five minutes’ drive from the A1, which links to the A14, Logicor's 189,697 sq ft distribution facility was originally let to Dart Products Europe on a 10-year lease, from July 2017, to combine the operations of several warehouse buildings occupied by Dart in Huntingdon.

This year, due to unforeseen headwinds within the plastic and paper cup industry, the decision was taken by Dart to close the Peterborough warehouse along with its manufacturing plant in Huntingdon.

With a substantial fit out including a VNA racking system, new canteen/welfare facilities and modern offices, the unit was first offered to the market on a sub-let or assignment with approximately seven years remaining on the current lease. However, Dart was holding a cost liability on the property and it became clear that its best-case scenario was to exit the lease altogether.

Solution

Advised by Knight Frank, Taylor Wimpey had identified Peterborough as the ideal location from which to service its numerous UK building sites. After initially discussing an assignment of the lease, Logicor stepped in to work through plans to enable a surrender of the existing lease to Dart while simultaneously granting a new lease to Taylor Wimpey.

The bespoke configuration of the VNA racking had to be removed and the floor fully reinstated to FM2 (special) standard. This work was undertaken by Bidwells’ building surveying team and included not only the removal of all 25,000 pallet locations within 2 weeks, but also the removal of all floor bolts and infill of the ground forklift paths. Despite the pressures of lockdown, this work was completed within three months of instruction to meet Taylor Wimpey’s timetable.

Result

The negotiations and reinstatement work culminated in Dart Products Europe Ltd being released from all their ongoing lease liabilities, Taylor Wimpey acquiring a new UK warehouse headquarters and Logicor securing a new customer to its UK portfolio.

Patrick Stanton, Head of Industrial and Logistics at Bidwells, comments: We are very pleased to have advised Dart on this substantial lease disposal. All parties worked tirelessly and diligently in identifying a solution which benefitted all involved, which was refreshing giving the current market circumstances.”

Mike Best, Asset Manager at Logicor, says: “At Logicor we always strive to work closely with our customers, listening to their needs and concerns to ensure their property facilities suit their requirements. We are delighted to be able to help in securing the best solution for Dart and of course, it is great to welcome Taylor Wimpey, a new customer within our UK portfolio. Thanks to all the team who have worked extremely hard to provide the best solution for all.”