29 Jul 2019
M7 completes lease re-gear at Baglan Energy Park, Port Talbot
M7 Real Estate (“M7”), the pan-European investor and asset manager has completed, on behalf of M7 REIP III, a lease re-gear on a large modern detached warehouse unit totalling 93,313 sq ft on Baglan Energy Park, Port Talbot.
Hi-Lex Cable Systems Ltd is a market leader in cable applications for recreational vehicles and producers of automotive cable applications and window regulators and have occupied the site since 2003. The reversionary rent agreed until the end of 2021 equates to £4.25 psf which is an uplift of 13.6%. No rent free was offered as part of this deal.
Baglan and the surrounding area has long been established as an area of heavy industry, with the steel works at Port Talbot being the major employer. The contraction of traditional industries is leading to a diversification of the local economy and Baglan Energy Park is transforming the area, attracting national and international companies with the capacity to one day accommodate 3,000 jobs. The 180 acre site is one of Wales’ premier business locations and is well located on the M4 motorway, which now benefits from toll free access via the Severn Bridge, and is predicted to give a £100 million boost to the Welsh Economy.
Victoria Lane, Asset Manager at M7, commented, “We are pleased that Hi-Lex have committed to staying in this location and on this site for the foreseeable future. M7 appreciate that as many businesses are currently going through difficult times with regard to future business planning and lease renewal commitments due to Brexit, we understand the importance of working together to get the best possible outcome for both parties.”