Legal & General secures major pre-let bringing new business to Gateshead
LGIM Real Assets (Legal & General) has announced a major pre-let at Gateshead’s Follingsby Park, seeing the development of a new 135,000 sq ft warehouse for TOR Coatings.
The deal, secured at the end of 2017, represents the largest North East industrial pre-let in 10 years.
Planning permission was granted by Gateshead Council in October 2017 for the new facility, which will incorporate office space to accommodate the TOR Coating’s European office HQ.
The Birtley-based company, established in 1975, is a subsidiary of RPM International Inc.
Industrial property specialist, HTA Real Estate, brokered the letting on behalf of LGIM Real Assets’ UK Property Fund, which has owned Follingsby Park for three years.
Matt Jarvis, fund manager at LGIM Real Assets, said: “TOR Coatings is another great addition to Follingsby Park and a further endorsement of its compelling occupier offer, following significant investment and improvements made to the park in recent years.”
A 20-year lease has been agreed with TOR and work has already started on site, with completion expected in summer 2018.
Follingsby Park comprises over 1.1m sq ft of industrial floor space and has attracted a host of new occupiers over the past 12 months, including Argus Fluid Handling Systems, Comau and Max Energy.
Nick Atkinson, HTA Real Estate’s director, added: “To have a company of TOR’s pedigree make such a significant commitment is tremendous news for Gateshead.
“The industrial market is now at a stage where requirements such as this can only be accommodated by taking a proactive, forward-thinking approach, which is what we are doing at Follingsby.”
Cushman & Wakefield are joint letting agents with HTA Real Estate.