New Back Up Power Station for Basingstoke
16 December 2016
Hermes Investment Management has announced that Unit A The Loddon Centre Industrial Estate in Basingstoke has been let to Loddon Power Ltd.
The latest in a run of deals on the estate has seen Loddon Power sign up to a new 20 year term for a 12,260 sq ft unit. The new deal brings the estate to over 85% let.
Loddon Power has already secured planning consent to use the building as a reserve power plant. The company, backed by Welsh Power, is working with funding partners to establish a series of similar plants across the country as part of the UK's transition to a low carbon sustainable energy system. The UK electricity network is increasingly reliant on clean, renewable, but intermittent energy sources. The Basingstoke unit will contribute to balancing the national system at times of peak demand and if renewable sources cannot deliver.
Stephen Ellis, Asset Manager at Hermes Investment Management said "Our investment in the estate over the past few years has opened it up as an attractive proposition to the occupier market. Its occupancy rate is testament to the high calibre of companies that recognise The Loddon Centre's attributes, including its location close to the M3. We are confident that Loddon Power will thrive at the estate".
The long term lease commitment was negotiated in order to maximise the return on the substantial amounts of capital being invested into the new power station. Hollis Hockley acted as one of the joint letting agents for Hermes.