Halladale Group Plc and The Carlyle Group have announced that they have completed phase 1 of the development of a 64 acre brownfield site in Cumbernauld, Scotland, and are shortly to commence with phase 2. The Cumbernauld development was first announced in June 2004.
Phase 1 involved the acquisition of approximately 13 acres of the site on which a 200,000 ft² production and office facility was constructed for and let to OKI UK Ltd ("OKI") on a 10 year lease at an annual rent of circa £900,000. The completed development has been been sold to an institutional investor for £12.3 million.
Phase 2 of the development will commence shortly on the adjoining 51 acre site which Halladale and Carlyle have just acquired for just under £22 million from OKI following the completion of phase 1. The development will include up to 200,000 ft² of new retail warehousing. Construction is expected to begin at the end of 2005, with completion due by autumn 2006. Planning consent exists for up to a further 130,000 sq ft of retail warehousing and the total project has an estimated end value of approximately £100 million. Halladale and Carlyle also announce that B&Q has signed an agreement to be the anchor tenant for a 47,000 sq ft unit on a 20 year lease on the retail warehousing park.
Eurohypo Bank is providing the senior debt for phase 2.
Culverwell Property Consultants and Harvey Spack Field are acting for Halladale and Carlyle on the retail development and Culverwell Property Consultants and M3 advised Halladale and Carlyle on the sale of the new OKI facility. Atisreal advised OKI throughout.
David Lockhart, Chief Executive of Halladale, said: "We are very pleased to announce the completion of phase 1 of this complex phased-development in Cumbernauld. We have successfully completed and sold the new OKI office and production facility and have just acquired the remaining land to enable us to commence with phase 2 of this major retail warehouse development. We are delighted to announce B&Q as the anchor tenant in what will be one of Scotland's largest retail parks."
Robert Hodges, Managing Director, The Carlyle Group commented: "The development is progressing very well and we are delighted to be entering the second phase. Judging by the pre-lets achieved and discussions underway, we believe there will be significant demand for this retail park in Scotland and look forward to further collaboration with Halladale as the development proceeds."
Niall MacDonald, Managing Director, OKI UK Ltd commented: "After many months of hard work and planning our new facility, Oki Printing Solutions, we are now in a position to further enhance our reputation as a Centre of Excellence for production, business support and distribution across Europe, Middle East and Africa. I would like also to express my sincere thanks to all parties involved in the project who have together made our dream a reality."