A Birmingham-based property company has persuaded three tenants to sign on again at an industrial estate in Staffordshire – and the biggest deal comes two years before the company’s current lease was due to expire.
CT Paper Sales, which is one of the country’s largest independent paper merchants and convertors, has taken a new five-year letting, for 41,665 sq ft of space, at Landywood Enterprise Park, in Great Wyrley.
Process engineering specialist GSR Systems has expanded from 5,000 sq ft acquired 12 months ago and has now taken a new five-year lease for its 11,545 sq ft, where it offers sophisticated 3D modelling solutions for clients in the food, drink and manufacturing sectors.
The hat-trick of satisfied tenants was completed when Chassis Development Services agreed a new three-year lease for 9,300 sq ft of space. The family-owned business has traded successfully for more than 30 years, converting commercial vehicles.
Negotiations for all three deals were carried out by Andrew Hartley, a surveyor with Cannock-based niche agency Andrew Dixon & Co, who are Nurton‘s joint agents at Landywood, with DTZ.
“It will be surprising to many people that, even in these very competitive times, none of the three companies considered moving to another location. They were happy to stay, and we were able to agree leases on terms which both sides found acceptable.” he said.
“It was especially pleasing, of course, to be able to sign up GSR Systems for another five years on expanded premises, when their existing lease still had two years left to run. It would be an unusual happening in a boom market, let alone in the present conditions.
“It also underlines the popularity of this location that these tenants, plus Icon Exhibitions and Display, now occupy some 69,000 sq ft, which is a very healthy 92% of the available space.”
Nurton’s director, Keith Simkins, believes the company is benefiting from its determination to establish genuine relationships with its tenants.
“Really getting to know people is a key element of our strategy, and you can see the results at Landywood, where Andrew has done a great job on the ground. We’ve backed him up and delivered what was required during the negotiations,” he said.
“We held detailed discussions with each tenant, and were able to tweak each lease accordingly to suit their requirements. The management team at GSR, for example, wanted us to share liability for potential roof repairs, and we were happy to do so.
“For CT, we contributed to their roofing work, and are upgrading their car park. Chassis Development Services were given a rent-free period. The three companies gave us the security of longer income, and we offered solutions for their issues. It‘s how a landlord-tenant relationship should work.”