Three units. Three customers. One Logical Solution
23 Nov 18
Re-developing 594,000 sq ft of warehouse space in Tamworth to support a customer's growth ambitions.
In 2014, Logicor acquired 594,000 sq ft of warehouse space at Bonehill Road, Tamworth.
The warehouse was split into three blocks: A, B and C, put together in a piecemeal fashion, and let to two customers: Hermes and Euro Car Parts.
The UK Asset Management team met with the standing tenants, always the first port of call when acquiring new property, to discuss their occupational strategy. Both had plans to move into larger, purpose-built facilities.
Recognising the site's potential, Logicor saw the opportunity – with a vacant possession – to extensively refurbish the Bonehill premises, creating one large warehouse and proceeded to introduce the upgraded scheme to another existing customer XPO Supply Chain Ltd, with the opportunity of acquiring a new lease on the entire space.
Logicor, through its close liaison with XPO, was aware that the firm was looking to win a contract with Premier Foods, who were considering consolidating a number of its existing warehouses.
The Bonehill site offered great potential to fulfil this contract. However, initial feasibility studies showed the building was too small.
Logicor provided a solution to demolish and rebuild Block B, extending it by 50,000 sq ft and raising the eaves height from 5.6m to 10.4m, bringing it in line with the adjacent blocks.
XPO’s customer required a phased-occupation of the building, taking the initial space in March 2017, with occupation of the whole extended space by January 2018. Logicor worked with Hermes to surrender its lease on Block A and bring forward the expiry date on Block B, agreeing to re-grant Hermes a short-term license on B to avoid disruption to its operations. XPO was to enter Block C after the expiry of Euro Car Part’s lease which, with agreement from both parties, was extended to December 2017 to tie in with the commencement of the new overarching XPO lease on the whole.
These recommendations formed the proposal put to XPO in May 2016 and in turn to XPO’s client Premier Foods. The Logicor team even attended meetings with XPO and its customer to assist in winning the new contract. Following this, working under tight timescales, Logicor submitted a planning application for the extension in December 2016, prior to solicitors being instructed.
The outcome was a new long-term lease signed with XPO for 645,000 sq ft - Logicor’s largest letting to date - and three very happy customers.
“The team at Logicor did an excellent job working closely with us to navigate the complexities of our requirements and accommodate our customer needs.
Logicor constantly engaged with us throughout the tender process to try to offer a solution which fitted with the requirements we were looking for.
This was a complicated deal involving the surrender of two existing leases, a construction agreement for the extension and the new lease to ourselves. This was all undertaken under severe time pressure to fulfil our commitments to our customer.
The experience working with Logicor has further developed our strong working relationship.”
Mark Catley, Business Development Director, XPO Logistics