Co-operative Group is close to agreeing to take a 500,000 sq ft distribution centre at Clowes Development’s 112-acre Castlewood business park in South Normanton, Derbyshire.
The Co-op will take a 20-year lease on a 35-acre site at the park to house its food operation. It will pay £4.65 per sq ft, with fixed uplifts of 2.5%. The lease is expected to be signed within the next few weeks.
Clowes, which secured the deal in partnership with First Industrial, beat competition from ProLogis’ ProLogis Park in Eastwood, near Nottingham, and Goodman’s 100-acre Derby Commercial Park for the requirement.
The Co-op has been acquiring warehouses across the country, including in Scotland, Andover and Avonmouth. It still has an outstanding requirement in the south Midlands.
The deal marks the second partnership for First Industrial and Clowes.
In January 2010, the pair secured a 900,000 sq ft prelet to retailer Marks & Spencer at Clowes’ East Midlands Distribution Centre near Castle Donington, Leicestershire. Work on the M&S shed has been under way since December.
lisa.pilkington@estatesgazette.com
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