ICG, the global alternative asset manager, today announced that its real estate business has secured DSV at a second unit at Mercia Park. This new 215,000 sq ft lease expands DSV’s footprint on the park to over 500,000 sq ft, with the global transport and logistics company having taken a 315,000 sq ft unit in March 2023.
This latest transaction follows the surrender of two units, and means the asset remains 100% leased to its two investment grade tenants JLR and DSV across a 2.94 million sq ft logistics and manufacturing space in the heart of the UK’s Golden Triangle.
ICG agreed to forward fund Mercia Park in 2021, on behalf of its Strategic Real Estate (“SRE“) I fund and at the time, the deal represented Europe’s largest ever single occupier built-to-suit transaction with Jaguar Land Rover (“JLR“) agreeing to take the entire scheme. However, following a strategic lease surrender on two units comprising 530,000 sq ft, a new 10-year lease term has now been agreed to global transport and logistics company DSV reflecting a 40% uplift on historic rents. With headline rents now at £10psf in the immediate area , the asset is highly reversionary ahead of the next review in early 2027.
Located on a 238-acre site, Mercia Park is one of the pre-eminent logistics and manufacturing hubs in the UK’s Golden Triangle with new levels of build quality and sustainability. All units have been delivered to BREEAM Excellent and net zero in construction. Located just off the M42, the site has excellent connectivity to the region’s local workforce, while East Midlands and Birmingham International Airports are situated within a 22-mile radius of the scheme.
Chris Nichols, Head of Strategic Real Estate (SRE), ICG commented:
This agreement reflects Mercia Park’s appeal as a prime logistics hub, attracting major global occupiers in response to the growing demand for high-quality, well-located facilities. As the largest asset in our SRE I portfolio, it is already a key driver of returns, while this most recent value add initiative delivers rental uplifts well ahead of our projection, further underpinning our conviction in the quality of the asset.
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About ICG
ICG provides flexible capital solutions to help companies develop and grow. We are a leading global alternative asset manager with a 35-year history, managing $106bn of assets* and investing across the capital structure. We operate across four asset classes: Structured and Private Equity, Private Debt, Real Assets, and Credit.
We develop long-term relationships with our business partners to deliver value for shareholders, clients and employees, and use our position of influence to benefit the environment and society. We are committed to being a net zero asset manager across our operations and relevant investments by 2040.
ICG is a member of the FTSE 100 and listed on the London Stock Exchange (ticker symbol: ICG). Further details are available at www.icgam.com. You can follow ICG on LinkedIn and Instagram.
* Past performance is not a reliable indicator of future results; as at 30 September 2024
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