Tesco and Sainsbury’s have secured major distribution warehouses in Scotland this month. Sainsbury’s finally got planning permission from Strathclyde Council for a 18,850 sq m (200,000 sq ft) plus shed and Tesco plumped for a massive new shed of some 69,675 sq m (750,000 sq ft) at Rosemound and British Land’s scheme at the former NEC semi-conductor plant.
Rosemound and British Land acquired the 51.5ha (127 acre) NEC site for around £17m and plan to develop a 139,350 sq m (1.5 million sq ft) mixed use development that will include distribution warehousing. It is thought Tesco will close its existing warehouses in Livingstone and Dundee.
Kenmore Properties is to develop an additional 19,044.5 sq m (205,000 sq ft) shed for Sainsbury’s opposite its £23m Langlands Business Park depot in East Kilbride, which it built in 1997. A lease has been agreed at rent in the region of £53.83 per sq m (£5 per sq ft).
Last year, Morrisons secured the 131,060 sq ft Europoint warehouse facility at Eurocentral for three years making it the biggest Scottish industrial lease of 2005.
Acting on behalf of the landlord, Tritax Assets, CB Richard Ellis confirmed that Morrisons would have the option of extending the initial three-year lease for a further two years. The retailer also secured a short-term lease on a further 2,787 sq m (30,000 sq ft) building for distribution purposes while it continues to seek a 46,450 sq m (500,000 sq ft) base. The Co-op is also believed to have a requirement in Scotland of some 37,160 sq m (400,000 sq ft).
Cushman & Wakefield Healy & Baker advised Sainsbury’s while Holley Blake acted for Kenmore. Lambert Smith Hampton is advising Tesco.
Upland Developments has applied for planning consent to build a 23,875.3 sq m (257,000 sq ft) warehousing scheme at its Newbridge site outside Edinburgh. Ryden and Jones Lang LaSalle are joint agents for the scheme.
