Tulchan Developments 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 £12m facility is being provided by an overseas investor.
Co-op has taken 47,565 sq ft distribution facility with an 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.
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 development-ready site.
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.’’
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.”
Tim Ellis, logistics infrastructure development manager for the Co-Op, added: ‘’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. Matthews & Goodman advised Co-op on the letting. Lismore acted for the overseas investor on the forward funding.
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