ICG Real Estate has secured a second deal with transport and logistics company DSV at its 2.9m sq ft Mercia Park on the Leicestershire-Derbyshire border.
The new 215,000 sq ft lease expands DSV’s footprint at the park to more than 500,000 sq ft, having taken a 315,000 sq ft unit in March 2023.
ICG agreed to forward fund the 238-acre Mercia Park in 2021 on behalf of its Strategic Real Estate I fund. At the time, the deal was Europe’s largest single occupier built-to-suit transaction, with Jaguar Land Rover agreeing to take the entire scheme. However, following a strategic lease surrender on two units comprising 530,000 sq ft, a new 10-year lease term has now been agreed with DSV, reflecting a 40% uplift on historic rents.
Headline rents are now £10 per sq ft.
Chris Nichols, head of strategic real estate at ICG, said: “This agreement reflects Mercia Park’s appeal as a prime logistics hub, attracting major global occupiers in response to the growing demand for high-quality, well-located facilities.
“As the largest asset in our SRE I portfolio, it is already a key driver of returns, while this most recent value add initiative delivers rental uplifts well ahead of our projection, further underpinning our conviction in the quality of the asset.”
Photo from ICG
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