July 25, 2023
Melburg Capital [Melburg] has pre-let the entirety of Voltaic, Wakefield 41, a 210,000 sq ft prime logistics facility in Wakefield, Yorkshire, to XPO Logistics, which marks the largest letting of the year within the region. XPO has committed to a 10-year lease term with a break in year 5, and have committed to extensive tenant works over and above the agreed specification.
Melburg acquired the property off-market in Q1 2022. Since securing the necessary planning consents Melburg has undertaken a wholesale repositioning of the facility, which is due to complete in August.
XPO Logistics is a leader in providing transportation solutions. Headquartered in Greenwich, Connecticut, U.S, the company operates from in excess of 560 locations globally and benefits from annual revenues in excess of $7 Billion.
XPO Logistics will utilise the facility to service its ongoing contracts with Sain-Gobain, a world leader in light and sustainable construction. Saint-Gobain designs, manufactures and distributes materials and services for the construction and industrial market, generating 51.2 billion euros in turnover in 2022. The occupation of Voltaic follows a consolidation for the partnership, with the unit now a key operational logistics hub.
Andrew Burns, Melburg’s Head of Asset and Development Management said:; “The quality of our refurbishment is reflected by the quality of occupier in XPO Logistics. The industrial sector is not immune to wider fiscal turbulence and it is therefore imperative to understand the operational and sustainability requirements of an increasingly discerning occupier base. This understanding has enabled us to deliver an optimal product at a competitive rental level. We are continuing to organically grow our logistics platform and will soon be making an announcement around a broadening of management services”
Jack Burgess Melburg’s Chief Executive Officer added: “We welcome XPO Logistics and its client Saint-Gobain as partners. The letting validates our data-driven approach to investing – highlighting our ability to identify off-market opportunities within geographies and sectors with an acute supply demand imbalance, and execute quickly when capitalising on pricing dislocations”
Dave Robinsons, Partner at Cushman & Wakefield commented:“Melburg’s foresight to identify this off-market opportunity and implement a quality refurbishment of an existing unit on Wakefield 41 Industrial Estate, one of Yorkshire’s prime locations, was key in securing this deal. Furthermore, the significant number of parties and competitive process demonstrates the continued resilience of the occupier market particularly for key product in top tier locations”
Melburg was advised by Cushman & Wakefield, Avison Young and Burgess Okoh Saunders LLP. XPO were advised by Louch Shacklock and Partners.