Calbee Deeside

New owners complete first deal at Deeside

The Aberdeen Property Trust and Centurion Properties have let a 64,300 sq ft industrial unit at Deeside Industrial Park East to Calbee, Japan's largest manufacturer of savoury snacks, for its first investment in Europe.

Calbee (UK) signed a 15-year lease on unit 90, formerly occupied by Greencore. APT and Centurion agreed a lease surrender with Greencore in October and then re-let the space to Calbee after beating competition from three other UK locations.

Calbee, listed on the Tokyo Stock Exchange, will use the base at Deeside Industrial Park East for manufacturing, distribution and research and development activities, with the investment set to create around 100 jobs over five years. Production is set to commence in the first half of 2015.

Michael Jones, director responsible for Centurion's asset management activities in the North, said: "The letting of this unit was always going to be a big challenge. The fact that we have taken a substantial lease surrender premium and agreed a new long-term letting to a leading international company within six months of ownership is testament to the ability of Centurion and its professional team to react quickly, and it has also added considerable value to the investment.

"It also underlines the strategic location of the industrial park, and we expect to complete soon a number of other lettings at improved rental levels."

The letting is the first since APT and Centurion acquired Deeside Industrial Park East from Universities Superannuation Scheme in April for £34m, at a net initial yield of 8% and a reversionary yield of 9.6%.

The 105-acre estate comprises 49 units, totalling 827,500 sq ft, with individual unit sizes ranging from 1,980 sq ft to 136,650 sq ft. Centurion has initiated an asset management programme of refurbishment of vacant units, alongside rebranding, marketing and repositioning of the estate.

Letting agents at Deeside Industrial Park East are Savills and Legat Owen. Quoting rents are £4.75/sq ft for newly refurbished space and £4.25 – £4.50/sq ft for unrefurbished space.

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