Warehouse lease transactions continue despite Covid-19

Landlord Schroder UK Real Estate Fund has secured 24 transactions, totalling 328,582 sq ft of floor space, in the past three months despite Covid-19.

The 24 transactions included new long- and short-term leases as well as lease renewals at Hartlebury Trading Estate, Acorn Industrial Estate in Crayford, Arenson Way in Dunstable, and Woking Business Park.

Included in the transactions was a 164,712 sq ft, five-year lease extension to garden timber manufacturer Forest Garden at Hartlebury Trading Estate in the West Midlands. Forest Garden also took on a new lease on an additional storage yard at the site to assist with the company’s expansion.

A new 10-year lease for 55,101 sq ft of space was also completed with Concept Furniture International while ARCC Communications signed a new six-year lease for a 16,755 sq ft unit.

SREF also completed significant lettings at its Arenson Way site in Dunstable with the arrival of Signature Flatbreads, which has signed a new five-year lease for 40,775 sq ft.

Rob Cosslett, deputy fund manager, Schroder UK Real Estate Fund, said: “These latest transactions across our industrial assets have taken place despite the uncertainty caused by Covid-19. Not only is this an encouraging sign for the UK property market but also a clear indication of tenant confidence at these particular estates, reflected in the long-term nature of the lettings.

“Notwithstanding the well-reported increased demand for short-term use of industrial units during the pandemic, we have seen increased interest in industrial units from tenants requiring space in the longer term. The latest arrivals within the SREF portfolio include businesses from a variety of different industries including manufacturing, healthcare and engineering.”