2011 was a difficult year within the property industry, both locally and regionally but it is not all the doom and gloom the press seem to continue to cry about, particularly within the Coventry area. We at D&P Holt in 2011, after a fairly slow start, had a fair amount of success.

The Canute Group, who had outgrown their facility in Leamington Spa, were helped by D&P Holt to both dispose of their lease on their premises at Tachbrook Park to Groupo Antolin, but also help them negotiate the acquisition of Plot 7030 at Middlemarch, Coventry, a 65,000 sq ft warehouse facility with good yard and loading facilities and this has helped with their UK expansion.

Extracare required new premises in Coventry. D&P Holt were responsible for finding new office headquarters for them on the Binley Business Park and, following the acquisition thereof and a refurbishment programme for the building having been put together, D&P Holt sold their interest by way of a sale and leaseback which helped finance the cost of the move and refurbishment.

In the second half of the year there was a pick up in both enquiries and instructions. D&P Holt were instructed by the Fidelity Group on two units at the Spitfire Centre on Coventry Business Park extending to 14,000 sq ft and 10,000 sq ft respectively. It was not long before a deal had been agreed on the 14,000 sq ft unit, which was completed in November by way of a new lease to Mission Foods as part of their expansion programme. In addition, within weeks, Unit 6, extending to 10,000 sq ft, was also put under offer. This lease was completed in December to Thomas Sanderson Limited.

The problem we now have is lack of good modern stock. By example of the deals at the Spitfire Centre, there is good demand for these which is increasing, particularly after the announcement by Jaguar Land Rover to develop their new engine plant in Wolverhampton and their continued expansion of production and their success abroad. The Coventry and Warwickshire area have certainly benefitted from a number of enquiries, particularly from companies hoping to be part of the Jaguar Land Rover supply chain.

This increasing activity in late 2011 has continued into the New Year and has in fact increased, with a number of units going and offers made. Although incentives available to tenants are still significant, with the reduction in stock now taking place we can see owners of buildings starting to look for both longer leases from occupiers and less up front incentives.

For advice on any commercial property related matters, please contact our team at D&P Holt on 024 7655 5180.