M7 Real Estate, the pan-European investor and asset manager, has completed five new lettings totalling about 5,000 sq m at the Air Cargo Centre in Castle Donnington in the UK, which is now at full occupancy, on behalf of a global institutional investor.
The asset, which comprises a total of about 14,2000 sq m of industrial space, was acquired as part of the M Portfolio from Commercial Estates Group in October 2018. The property, which is located adjacent to East Midlands Airport, had a vacancy rate of 31.4% across four units totalling around 4,450 sq m with a further two units totalling about 600 sq m becoming vacant shortly after.
M7 identified an opportunity to significantly improve the occupancy and grow the rental income. It undertook an asset management programme to refurbish space and convert about 1,00 sq m of office space to warehousing, while also improving the landscaping surrounding the units.
This led to recent lettings with DHL, HGV Direct and Norsk, setting a new record rent for the asset of £7.95 per sq ft, an increase on the previous average passing rent of about £6.50 per sq ft.
James Chasen, asset manager at M7, commented: “In just six months we have turned around the performance of this asset, leasing all the vacant space to achieve 100% occupancy on what is a unique asset for this strategy. We have leveraged our asset management expertise to capitalise on the Air Cargo Centre’s attractive location next to East Midlands Airport to secure a number of high-profile occupiers seeking air side facilities for their delivery networks.”