EGL helps developer to hit hat-trick of property deals
Our Commercial Property team has helped a leading commercial property developer to complete three major new deals in the Midlands.
We acted on behalf of Stoford Developments as the company secured two pre-let occupiers – Kimal Plc and Spire Healthcare – at the prestigious new £120 million Worcester Six Business Park. Both projects are now funded by long-term investors, Liberty REIT and a Knight Frank fund.
We completed our hat-trick of deals by working alongside Stoford as it agreed to deliver a 39,105 sq ft hangar at the £500 million East Midlands Global Gateway on behalf of a global engineering company. This project has been funded by Legal and General
Our partner Mark Dakeyne said: “We’re thrilled to have completed these three major deals on behalf of Stoford Developments in such quick succession. Stoford are a very active occupier led developer and their developments are all significant projects that will create jobs and sustainable growth in both regions.
Heidi Brennan, director of our new construction services division said: “Our involvement is also particularly pleasing coming just a few months after the launch of our new construction division, advising clients on all major forms of construction, engineering and demolition contracts. This early success demonstrates how collaborative the EGL development and construction teams are and how committed we are to assisting clients with achieving their deadlines.”
Mark Dakeyne and Aaron Chandler, Senior Associate, advised on the forward funding agreements and agreements for lease and Heidi Brennan drafted the full suite of construction documentation and negotiated the finals forms with the Funds, Tenants and construction team.
Located off junction six of the M5, Worcester Six Business Park will provide 1.5 million sq ft of accommodation and create up to 5,000 jobs. Kimal Plc was the first company to commit to moving to the development, paving the way for construction of its new 140,000 sq ft headquarters.
A market leader in developing and manufacturing a range of innovative products and procedural solutions for the healthcare sector, Kimal Plc has agreed a 15-year lease for the £13 million unit. Building work is underway and practical completion is expected in the autumn.
Leading UK independent hospital group, Spire Healthcare, has also been secured as an occupier at Worcester Six. The FTSE 250 listed business has agreed a 20-year lease on a new 72,500 sq ft unit at the site. The move to the £9 million unit could create around 60 jobs.
Stoford has commenced construction of a new hangar at East Midlands Airport. The hangar will be at the heart of a development that aims to transform East Midlands Airport. The site will house aircraft and will also be used for training, conferences and other events.
Stoford acquired the site at East Midlands Airport in a deal with a gross development value of £10.25 million, agreeing an initial 30-year lease. Practical completion of the hangar is expected in December.
Stoford director Gerard Ludlow said: “EGL works as an extension to our own in-house development delivery team. They know how we think and handled these 3 projects coming to fruition all at the same time. What’s more, they are fun to deal with and can act as a release valve when the pressure builds up – as it does when deals approach closing.”
“The agreements with Kimal Plc and Spire Healthcare are a great coup for Worcester Six and mark an important milestone as they are the first pre-let occupiers to be secured at the site.
“It is also a source of pride for us to be working alongside such a highly respected global engineering leader at East Midlands Airport.
“This is an exciting development which will create an impressive new home for the aircraft while supporting the creation and growth of the East Midlands Global Gateway.”