St Modwen to develop EUR 23m purpose-built facility for Siemens

UK regeneration specialist St Modwen has signed a £20 mln (EUR 22.7 mln) deal to develop and pre-let a new 135,000 sq ft facility at Teal Park, Lincoln, with German electronics company Siemens on a-12 year lease.

The new facility will allow Siemens to consolidate its Lincoln-based gas turbine service business, currently situated at four different sites within the City, into one new, high quality facility at Teal Park. Two of the existing sites are owned by St. Modwen - the 106,000 sq ft Firth Road facility and the 735,000 sq ft main Ruston Works site, extending over 12 and 23 acres, respectively.

At Firth Road, the service business will continue to occupy 66,000 sq ft and will vacate the remaining surplus space at the end of 2012. This will be refurbished and upgraded by St. Modwen before being leased to alternative occupiers. Ruston Works will remain fully occupied as Siemens’ Turbomachinery business moves into the space vacated by the service business.

Outline planning permission for Teal Business Park, together with major upgrades to the A46, was granted earlier this year. A detailed application for Siemens’ new BREEAM Excellent facility (Building Research Establishment Environmental Assessment Method) will now be submitted to North Kesteven District Council.

The new home for Siemens’ gas turbine service business will occupy 11 acres of Teal Park and will be delivered by St. Modwen. It will comprise initially a 50,000 sq ft office and an 85,000 sq ft state-of-the-art service workshop, together with surplus land to allow for future planned expansion. Building works are expected to start in autumn this year with completion anticipated for December 2012.