Amazon and M7 agree on lease extension for disputed Scottish warehouse
Amazon has struck a deal for a new lease and a new rent at the 300,000 sq ft warehouse known as Unit 1 Faulds Park, Gourock, where it has been trading since 2004.
Earlier this year the property was sold by Scottish Enterprise to new owner M7 who gave the internet retailer six months notice to quit as the original lease was due to end on 1 August 2019.
Amazon challenged the move at the Court of Session in Edinburgh, arguing it was entitled to a year’s notice. However, at a hearing last month, the court backed M7 and Amazon moved to appeal.
However Richard Croft, executive chairman at M7, told Logistics Manager: “We have now settled and have a new lease with Amazon going forward.”
No details of the lease have been shared although it is thought there has been a considerable uplift in the rent, which is believed not to have had an uplift in the 15 years since implementation.
The property, built approximately 20 years ago and has a 7.5m eaves, 48 dock level doors as well as 29,000 sq ft of offices.
Externally the property benefits from concrete surfaced yards at each end of the building and controlled entry to the yard via a gatehouse. At the front elevation of the building there is a tarmac surfaced car park that provides 367 parking spaces. The site area of the property extends to 30.15 acres
The property was originally leased from Scottish Enterprise Renfrewshire in 2004 on a 15 year lease and was later sold to M7. Between 2005 and 2017 Scottish Enterprise gave Amazon £5.3 million in assistance to create its distribution centres in Scotland including a Regional Selective Grant worth £1.6 million to specifically set up the Gourock centre. In the original letting CBRE acted for Scottish Enterprise Renfrewshire, while Amazon represented itself.
The property is located 15 miles west of Junction 31 of the M8 motorway and 24 miles from Glasgow International Airport.
An Amazon spokesperson said: “We understand this has been a concerning time for our associates and are pleased to confirm we have reached an agreement with the landlord to extend the lease of our fulfilment centre in Gourock which maintains our operation in Inverclyde.”