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Co-op secures M8 site for £12 million distribution facility

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Tulchan Developments has agreed the pre-let of a new facility for Co-operative Group at Link Park, Newhouse, on the M8 east of Glasgow.


The project will be brought forward in a joint venture with landowner Fusion Assets, the arm’s length property development and regeneration company of North Lanarkshire Council. Colliers advised Fusion Assets. Forward funding for the c.£12 million facility is being provided by an overseas investor. 

Co-op has taken 47,565 sq ft distribution facility with enhanced specification and additional service yard and HGV parking on an 18-year lease at £12.15 per sq ft. Located next to its main 500,000 sq ft Glasgow distribution centre, construction has now started with completion planned for October 2022. 

Fusion Assets acquired the 7-acre brownfield site in 2014 and completed a package of enabling works funded by the Scottish Government through the North Lanarkshire Vacant and Derelict Land Programme to create a fully serviced and development ready site. A procurement exercise to find the right development partner was caried out last year to allow the occupier to have the facility available in 2022. 

Gavin Robertson, Director at Tulchan Developments, said: ”We’re pleased to have secured a high-quality pre-let for this strategic site and are on track for completion later this year. This is the second unit we’ve been involved in for Co-op with Newhouse providing a key part of their overall logistics network in Scotland going forward.’’

Bryce Stewart, Partner at Montagu Evans, said: ”With an increasing shortage of industrial and logistics stock across Scotland, this will be the first of many pre-lets over the coming months as demand for space continues to grow.’’

Iain Davidson, Director at Colliers, which advised Fusion Assets, said: “This was a multi-layered deal brought forward by a number of parties working together in close cooperation. The new facility will help boost the local economy as well as providing an important part of Co-op’s distribution network in Scotland.”

Murray Collins, Managing Director of Fusion Assets, said: “I am delighted that the initial public sector investment in acquiring and remediating the site at Link Park, Newhouse, has levered in additional investment from an overseas investor and secured Co-op as a tenant. The new Co-op facility will provide additional job opportunities and further embed a large and important employer into the local area.”

Tim Ellis of Co-Op Logistics added: ‘’We are delighted that work has started on the bespoke de-kit facility adjacent to our depot off the M8 outside Glasgow at Newhouse. The existing depot already serves around 600 Co-op stores and this new facility strengthens our core logistics operation in North Lanarkshire. Despite the challenging times, the Development team and their contractor are on programme to deliver the unit this autumn which in turn allows us to upgrade part of the existing depot. This investment is key to the development of our overall network as part of our commitment to Scotland.’’

Montagu Evans advised Tulchan Developments on the leasing and forward funding. Matthews & Goodman advised Co-op on the letting. Lismore acted for the overseas investor on the forward funding. 

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Iain Davidson

Director

Industrial and Logistics

Glasgow

Iain has a wealth of experience in the Scottish commercial property market, specialising in Industrial and Logistics real estate. He is in an expert in providing acquisition, disposal, development and general agency advice to a wide range of private and public sector clients ranging from developers, occupiers, institutional investors and private clients. During a career spanning over 20 years, Iain has and continues to be involved in most of  the highest profile industrial property deals in Scotland.

Representative clients and projects include: 

Frasers Property/Oaktree/Patrizia - Appointed in 2015 as Letting agents & development advisors on Scotland's largest and most established business estate, Hillington Park, totalling 2.5m sq ft and benefitting from Scotland’s first and only Simplified Planning Zone.

Canmoor - Letting agents on the 1.6m sq ft Westway Park, Renfrew, Scotland's largest fully enclosed industrial park.

Eurocentral - Advised on various lettings, sales and acquisitions on Scotland's premier distribution park. Brokered deals to a variety of well known organisations, including; NHS, Lidl, DPD, Hermes, Wm Morrison Supermarkets, ACS Clothing, Mentholatum, Nagel Group, SB Components, LumiraDX and DX.

Prologis - Provision of development and letting agency advice on 1m sq ft prime industrial scheme known as Prologis M8 in Lanarkshire.  504,000 sq ft and 175,000 sq ft pre-lets to the Co-operative and Brakes respectively.

The Co-operative - Successfully secured mandate to dispose of UK wide portfolio of surplus warehouses totalling 3m sq ft. Approx. 1 m sq ft transacted in Scotland.

Logicor - Letting of Scotland's largest ever speculatively built warehouse; 380,000 sq ft at J4M8 to Amazon. Neighbouring 240,000 sq ft building sold to Schuh.

Freescale Semiconductor Inc - Sale and partial leaseback of 800,000 sq ft manufacturing facility in East Kilbride, Glasgow. Subsequent sale of the 31 acre site in 2021 to Copart on behalf of Clowes Developments.

Asda - Sale of 250,000 sq ft distribition warehouse facility in Grangemouth.

St Modwen Properties plc - Provision of acquisition advice for purchase of 32 acre former Rolls Royce facility at Hillington, Glasgow.  Retained to provide Agency advice on 750,000 sq ft estate, rebranded Pegasus Business Park subsequently sold whole site to MEPC. 

 

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