Insider Media Limited

Birmingham regeneration specialist St. Modwen has signed a £20m deal with engineering giant Siemens to build a 135,000 sq ft gas turbine facility in Lincoln.

The 11-acre Teal Park site will be leased to Siemens on a 12-year term.

It will comprise a 50,000 sq ft office and an 85,000 sq ft service workshop, together with surplus land to allow for future planned expansion.

Once the new site is completed, Siemens will be able to consolidate its Lincoln-based gas turbine service business, currently situated at four different sites within the city.

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 new occupiers.

Bill Oliver, chief executive of St. Modwen, said: "This deal underlines our increased focus on design and build projects with pre-lettings to high quality tenants.

"Siemens is a longstanding tenant of St. Modwen, and we have worked closely with them to ensure that we are able to meet the requirements of their strategic relocation to a purpose-built new facility. We will now focus on securing detailed planning, so that we can start on site as soon as possible."

Outline planning permission for Teal Business Park was granted earlier this year.

Building work is expected to start in autumn this year with completion set for December 2012.