UK Commercial Property REIT (UKCM) has fully let its 377,070 sq ft XDOCK377 logistics unit at Magna Park in Lutterworth to Armstrong Logistics, a pan-European distribution company.
Armstrong Logistics has signed a 15.5-year lease with open market rent reviews at £6.50 per sq ft, in line with estimated rental value (ERV), which will add a further £2.45m of annualised income to the company’s rent roll.
Armstrong Logistics is a UK logistics partner to discount grocer Aldi, delivering around one third of the ambient goods on Aldi’s store shelves. It already operates from another unit in Magna Park, which is Europe’s largest dedicated distribution park, and the occupation of XDOCK377 is essential to Armstrong Logistics’ business in order to satisfy continued growth in Aldi’s UK business.
The letting reduces UKCM’s portfolio void rate to 6.5% from 10% at the 30 June 2020.
UKCM : UK Commercial Property REIT lets huge warehouse