ICG Real Estate, the real estate division of Intermediate Capital Group (ICG), has obtained vacant possession of Units 1 & 5 at Mercia Park in Appleby Magna.
The five-unit scheme amasses 2,900,000 sq ft and was Europe’s largest ever single occupier build-to-suit transaction. ICG has control of the 215,000 sq ft and 315,000 sq ft units, due to reach practical completion in July.
The strategy forms part of ICG’s wider asset management initiatives for Mercia Park to capitalise on the exceptional performance of the Midlands market. There is a strong level of sustained occupier demand in the region, coupled with a historic low vacancy rate. This has put an upward pressure on rental levels, with as much as 23% growth in the past 18 months. Prime rents for 100,000 sq ft + new builds now stand at £8.75 psf in the Midlands.
Rachael Pittaway, associate director at ICG Real Estate, said: “We have firm conviction of the supply shortage for new build logistics space, especially of this quality and with strong ESG credentials. As we near practical completion, we are impressed with Mercia Park and what the teams at Winvic and IM Properties have delivered.
“Mercia Park is one of the UK’s largest Net Zero Construction Developments and the units are best in class, BREEAM Excellent and net zero carbon ready should a tenant wish to install PV and connect to green energy. We have already received strong interest in the units, and we look forward to continuing to create value for our investors by generating diverse and defensive income streams.”
DTRE are the retained leasing advisors for ICG on the park.
Tom Fairlie, partner at DTRE, says: “Obtaining vacant possession of these two Grade A assets couldn’t come at a better time for the Midlands market. There are currently only two available new builds over 100,000 sq ft in the whole of the Midlands region and we are therefore in dire need of some new supply. Units 1&5 will represent best in class product, which we are sure will be very well received by the occupier market.”
