Midlands-based property developer Rotherhill has completed a lease re-gear for UK aerospace manufacturer Meggitt Plc’s facility in Shepshed, Leicestershire.
Meggitt has occupied the site on Gelders Hall Road since its construction in 1987 (previously as Cobham Composites), with buildings extending to 48,845 sq ft set upon 3.8 acres.
The original agreement made in February 2022 was for a 3.25-year leaseback in order to allow Meggitt to relocate to a nearby site.
Following the takeover of Meggitt by US manufacturer Parker Hannifin Corporation in September 2022, Rotherhill agreed terms for a lease re-gear of up to 11.5 years. The terms of the lease re-gear also allowed for the release of development land, enabling a future industrial development of circa 30,000 sq ft.
Ed Jeffrey, associate director at Rotherhill, says: “We are delighted to have completed the lease re-gear with Meggitt and that they have chosen to commit to the location for the long term.
“The new agreement enables us to bring forward land for future development, whilst improving the rental return on the existing buildings and extending the duration of income for up to 11.5 years from an excellent covenant.
“It has been satisfying to develop a long-term relationship with Meggitt, working flexibly to accommodate their requirements whilst generating value for our investor partner.”
Rotherhill director Paul Bagshaw adds: “Our experience and sector knowledge allows us to take on investment and redevelopment opportunities with short term income. By proactively working with the current occupiers, we’ve been able to meet their requirements and achieve a positive and favourable outcome for all involved.”
