ProLogis has agreed what it describes as a “Continental-style, tenant-friendly” lease to capture BMW’s 460,000 sq ft requirement.
The deal will see the German car manufacturer take a 10-year lease on a bespoke 458,000 sq ft shed at ProLogis Park in Pineham, Northamptonshire, paying around £5.50 per sq ft.
Under the new lease, ProLogis will be responsible for the maintenance and repair of the property. Usually, leases in the UK are agreed on FRI terms.
A source said: “This is breaking new ground for the UK, but was probably helped by the fact it is an international company doing a deal with an international developer.”
ProLogis UK managing director Andrew Griffiths said: “This transaction reinforces our leading position in the build-to-suit market, where we have signed several deals this year.”
A planning application for the warehouse – which will become BMW’s regional distribution centre, delivering parts to BMW, Mini and Rolls-Royce dealers in the UK and Ireland – will soon be submitted to the West Northamptonshire Development Corporation. Subject to consent, completion is scheduled for 2012.
BMW, which had been searching for a new warehouse facility since early in the summer, selected the ProLogis site above Gazeley’s 420,000 sq ft Hydro at Magna Park in Lutterworth, Leicestershire, and a bespoke building at the developer’s Magna Park in Milton Keynes.
It will move from a site in Bracknell, Berkshire, which is now too small for its operations.
CB Richard Ellis acted for BMW, Burbage Realty and Reddings Hope Mann advised ProLogis.
nick.whitten@estatesgazette.com
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