Multiply Logistics North, the joint venture between Harworth Group plc and the Lancashire County Pension Fund c/o Knight Frank Investment Management, has secured rijo42 as its second tenant for its ‘Multiply’ commercial development scheme at Logistics North in Bolton.
The joint venture has exchanged contracts with rijo42, the UK’s leading supplier of commercial coffee machines, coffee beans and coffee ingredients, for Unit F2/E – a 20,344 sq ft unit currently being built as part of Multiply’s second phase by Buckingham Group. rijo42 will take a 15-year lease on the unit once it practically completes in October 2018 at a headline rent for the development of £7.25 psf.
B8 Real Estate and Jones Lang LaSalle (JLL) acted as joint agents for Harworth on the transaction.
rijo42 is the second occupier to sign up to ‘Multiply’, a scheme that will deliver ten commercial units totalling approximately 564,000 sq. ft across 3.12 acres over the next two years. Landscape material supplier Hardscape Products Ltd took occupation of Unit F2/A, a 44,771 sq. ft unit built as part of Multiply’s first phase of three units, on a 15-year lease in April 2018. Phase 1’s two further units, one of 62,952 sq. ft and the other of 55,556 sq. ft, remain available for immediate occupation.
Phase 2 of the development is currently being built owing to the continued lack of good quality new commercial space in the North West – a further six units of between 18,073 sq. ft and 149,198 sq. ft, including rijo42’s intended unit. Buckingham Group Contracting Ltd has been instructed as the Joint Venture’s principal building contractor with practical completion of all six units scheduled for October 2018.
Harworth Group is also responsible for the delivery of Logistics North, the North West’s largest live commercial development. Other manufacturing and distribution occupiers at Logistics North include Amazon, Aldi, Lidl, MBDA, Komatsu, Whistl, Costa, Greene King, Vaclensa and Northern Building Plastics, with over 5,500 staff to be employed on-site once Amazon’s unit becomes operational later this year.
Ian Ball, Executive Director of Income Generation at Harworth, commented:
“This is another excellent deal for Multiply Logistics North, marking the start of what we believe will be a fruitful long-term partnership in generating returns for Lancashire County Pension Fund and Harworth Group. Securing a early pre-let shows that demand from the North West’s SMEs remains very strong and we are now keen to maintain this momentum as the remainder of the Multiply Logistics North is developed out over the next eighteen months.”
John Styles, Partner at Knight Frank Investment Management, commented:
“We are delighted to have kick started the letting process at Multiply by securing a strong tenant on excellent terms for the joint venture. The quality of the product speaks for itself and this letting reflects tenant desire to occupy the very best stock, in the right location.”
Sean Griffin, Director of rijo42, added:
“I know I speak on behalf of everyone at rijo42 when I say that we are thrilled to be moving to Logistics North. Relocating to this impressive new development is perfect for us, especially through this period of rapid expansion and growth. The decision to move was simple; the site perfectly reflects our key vision to remain the largest independent coffee company in the UK and supports our long term eco-strategy. Our new state-of-the-art facility will enable us to deliver unparalleled first class customer service and provide our well-established team with a truly unique and inspiring place to work. The proposed development expansion will bring further career opportunities to the community and has the potential to be replicated in the South of England in the future, which is incredibly exciting”
Deputy Leader of Bolton Council, Cllr Ebrahim Adia, added:
“This is further good news for Bolton to join the 5,500 people that will be employed at Logistics North from later this year, showing that our ‘Team Bolton’ approach to creating new employment opportunities is delivering results. The development is the largest industrial site in the North West, in an excellent location, and it is no surprise that companies are choosing it to be their home. Securing tenants so quickly to these units shows confidence in Bolton and will bring further new jobs for our residents.”
Robert Kos, Senior Surveyor – UK Industrial & Logistics at retained agent JLL, commented:
“The deal to rijo42 so soon after securing Hardscape as a tenant provides further proof that Logistics North is one of the premier destinations in the North West and the decision to speculatively develop mid-box units on site was a successful one. I have little doubt that additional deals will follow across both phases one and two in the remainder of 2018.”