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Class A Modern Industrial Park in Poland

Posted on by Keith McKinley

At the turn of the new year, Accolade group completed the development of a industrial new park in Elbląg – the second largest city of the Warmian – Masurian Voivodeship, Poland. Elbląg Park is situated just five kilometres from the city centre, and a 35-minute drive from the port of Gdansk. Its proximity to the S7 expressway means it is also well-connected to Warsaw and Krakow.

Elbląg, with a population of 120,000 inhabitants and two universities, struggles with a relatively high unemployment rate. “The creation of our new industrial park brings with it 200 new jobs. Elbląg offers access to a wide range of potential employees, and we are looking forward to filling the gap on the local employment market. – explained Jarek Wnuk, Managing Director of Accolade Poland. “Currently there are no other class A warehouses in the immediate vicinity, and this is not the first time that we have entered a logistically underserved region and thrived. Accolade’s strategy to choose locations that are not obvious choices at first glance is based on our years of experience and ability to identify the potential of smaller cities and grow them together. Elbląg is another example of this successful approach – the park is already fully leased.” added Wnuk.

The Accolade park is the first class A industrial park in Elbląg. This 20,000 m² warehouse, consisting of 2 buildings, is situated on a 7 ha plot and is fully leased to two tenants: Flex (FLEXTRONICS INTERNATIONAL POLAND SP. Z O.O) and DPD.

Flex is an international electronics manufacturing services company that provides innovative design, engineering, manufacturing, real-time supply chain insight and logistics services to companies of all sizes across various industries and end markets. In addition to Lodz, Elbląg is yet another location where Flex has set up dedicated premises for a range of future activities.

DPD, the international parcel delivery network, is already an Accolade tenant in many other locations, such as Białystok, Koszalin, Jelenia Góra, and Bydgoszcz. Entering Elbląg is another step in this successful partnership and demonstrates that Accolade is not only an industrial real estate investor, but also an experienced asset management company which understands their tenants’ needs and grows in step with their business.

As with all the parks in Accolade portfolio, the Elbląg park is BREEAM certified (Very Good) and will soon be equipped with Accolade’s green solutions, such as e-waste containers, AEDs, and little landscaping on the plot surrounding the buildings.

4 New Logistics Units Completed in Wales

Posted on by Keith McKinley

St. Modwen Logistics, one of the UK’s leading logistics developers and managers, has completed the construction of four new high-quality, sustainable warehouses totalling c. 116,000 sq ft at St. Modwen Park Newport in Wales. Developed in response to growing demand in the region and to support business growth, one building totalling 17,000 sq ft has already been pre-let to adhesive manufacturer Ureka Global.

The quartet of buildings are EPC A-rated and hold a BREEAM ‘Very Good’ accreditation, helping potential occupiers meet their own ESG targets and reduce energy usage through the inclusion of a range of energy-efficient features. Built in line with St. Modwen’s ‘Swan Standard’ approach to sustainable construction, the buildings feature intelligent and sustainable LED lighting, smart metering and rainwater harvesting. Air source heat pumps are used for heating the office elements of the warehouses and solar (PV) panels on the roofs provide a proportion of the power for each unit, as well as encouraging greener ways of commuting through the inclusion on EV charging points and dedicated cycling routes.

St. Modwen Park Newport is strategically located to provide excellent connectivity to South Wales and South West England, with Junction 23A of the M4 motorway within two miles of the park via Queen’s Way, and Cardiff and Bristol reachable within 12 miles and 30 miles respectively. The estate and surrounding area benefit from the de-tolling of the Severn Bridges, further enhancing its accessibility by road.

116,000 sq ft of space completed with 17,000 sq ft pre-let

The delivery of these warehouses takes St. Modwen Park Newport to c.345,000 sq ft of warehouse space and the estate is already home to the likes of Amazon, Genpower, CAF and Mitel. Phase 4, which comprises an additional 263,000 sq ft of best-in-class logistics space, is due to complete in Summer 2023.

Mark Snow, Senior Development Director, at St. Modwen Logistics, commented: “St. Modwen Park Newport is located in Wales’ fastest-growing city, with nearly half a million people within a 30 minute drive, which underpinned our decision to bring these units forward speculatively. The park is already home to a number of leading businesses and has a range of warehouse uses, and the addition of over 100,000 sq ft of modern logistics space will provide opportunities for companies to grow, supporting a diverse mix of employment opportunities.”

Alex Nunn, Managing Director, Ureka Global, said: “After a period of sustained growth, we are incredibly excited to be moving into our new building at St. Modwen Park Newport. Having access to the M4 and wider motorway networks is critical to our business and, having looked at various locations, it quickly became apparent that Newport was the perfect spot for us.

“This move will allow us to bring all of our stock under one roof and ensure we are able to continue delivering for our customers to help them out of whichever sticky situation they find themselves in.”
Councillor Jane Mudd, leader of Newport City Council, said: “It’s fantastic to see St. Modwen investing in speculative builds at St. Modwen Park Newport. This reflects the confidence they have in Newport as a city, recognising our fantastic connectivity, availability of workforce, and the great quality of life we can offer. The fact that the new units have already attracted interest demonstrates this confidence is well placed, and we’d like to welcome Ureka Global to Newport. The new jobs and investment they bring enhances our reputation as a place to come and do business.”

Mecalux to Automate Manitou DC

Posted on by David Priestman

Manitou Group, supplier of handling, aerial work platform and earth moving equipment, has opened a new automated warehouse at its spare parts centre in Ancenis, France. The innovative solution consists of the Shuttle System from Mecalux.

Manitou Group, headquartered in Ancenis, has showcased its new automated storage and retrieval system (AS/RS). Mecalux has outfitted the French group’s logistics centre with the Shuttle System. This AS/RS — which houses more than 20,000 containers in just 560 m² — responds to the logistics centre’s space constraints. Two high-performance pick stations complete the solution installed. This innovative system increases productivity when it comes to picking the group’s small, high-turnover parts comprising nearly 16,000 SKUs.

The project began in 2021. It took shape in August 2021 with the installation of the structure, and the entire warehouse was put into service in April 2022. Today, with just two operators, this AS/RS can prepare 500 order lines an hour.

“Mecalux has implemented the latest storage and order picking technologies in Manitou Group’s logistics center. The Shuttle System automates the movement of goods to two high-performance pick stations, which boost operator throughput,” says Daniel Joly, General Manager of Mecalux France.

Maxime Deroch, President of Manitou Group’s Services & Solutions division, explains why the company chose Mecalux as a provider: “To better serve our customers, we reduce the preparation time of orders received and to be shipped at the end of the day. We were looking for a solution that would leverage the latest technological innovations to optimise deliveries of rush orders. The Mecalux project team understood that our storage capacity issues would be solved by deploying a high-density solution, and this clinched our decision. Thanks to the top quality of our service, we’re constantly improving our customer satisfaction.”

This two-aisle AS/RS is also scalable. That is, a third aisle can be added to handle a higher order picking volume in the medium and long term.

The Mecalux Group, with headquarters in Chicago and Barcelona, is one of the world’s leading companies in the warehousing technology and logistics software market. With over 50 years of experience, Mecalux develops automated storage, warehouse management system and metal racking solutions for all industries. The multinational has an extensive worldwide distribution network, 11 production plants, 7 R&D centres for technological development and a workforce of 5,000 employees.

Warehouse Acquisitions in Birmingham, Manchester

Posted on by Keith McKinley

St. Modwen Logistics, one of the UK’s leading warehouse developers and managers, has completed two acquisitions in Birmingham and Manchester as it continues to expand its portfolio in major cities across the country.

Network Park industrial estate is situated 1.7 miles from Birmingham City centre and was constructed in the early 2000s, comprising six high-quality modern warehouse units totalling c.80,000 sq ft.

In Manchester, St Modwen Logistics has also acquired Ashburton Park. The c.95,000 sq ft estate is prominently located 3 miles from Manchester City centre at the heart of Manchester’s Trafford Park, one of the largest and most successful business parks in Europe, which is home to over 1,300 businesses employing over 35,000 people.

James Cooper, Head of Transactions, at St. Modwen Logistics, commented: “These acquisitions further expand our footprint in two of the UK’s most established and competitive industrial and logistics locations, offering our customers access to national and international distribution networks, as well as to large urban populations which increasingly value next-day and same-day delivery services.

“We are continuing to explore additional opportunities to grow our portfolio through the development and acquisition of best-in-class logistics space in areas of structurally high demand.”

St. Modwen is a property developer owned by Blackstone focused on logistics and housebuilding. The company aims to deliver for customers through two dedicated businesses: St. Modwen Logistics, which designs, builds, owns and manages high-quality logistics assets in the UK, and St. Modwen Homes, which creates high-quality, contemporary new homes.

St. Modwen Logistics develops and manages urban and big box warehouses for customers including global logistics and e-commerce organisations as well as significant national and regional enterprises. We aim to deliver c. 2.2m sq ft of new warehouse space during 2022 and have one of the UK’s largest pipelines at c. 19m sq ft.

Sustainable Power for Warehousing

Posted on by David Priestman

Tritax Symmetry has entered into its first joint enterprise project with BasePower, a developer and operator of sustainable energy services, to supply clients at Symmetry Park Biggleswade with uninterrupted greener, cheaper warehousing power solutions, through the creation of a new on site 2MW energy centre.

Located on a greenfield site where the grid is constrained, the centre will augment the grid with renewable and resilient generation from a number of sources including rooftop solar PV, batteries and a Combined Heat and Power (CHP) plant.

The announcement is the latest in a series of sustainability measures the developer has taken in recent years to de-carbonise its schemes including achieving net zero carbon in construction across all of its construction programmes.

The project was specified, designed, procured and built by BasePower who will continue to develop energy systems in line with the evolving needs of the tenants.

The principal contractors on the project included Rolls Royce, whose Power Systems division installed the mtu-brand CHP systems, battery units and standby generators. Powersystems UK acted as the high voltage (HV) specialist partner for the electrical infrastructure. Service personnel from Rolls-Royce Power System’s UK subsidiary will provide ongoing maintenance to ensure operational excellence.

Speaking about the alliance, Tom Leeming, development director at Tritax Symmetry commented: “One of the priorities our clients have when deciding on a new location for their business is power. As a responsible developer, we realised the need to supplement and enhance the national grid supply to ensure a continuous, robust and greener alternative power supply for our occupiers.
“The installation of energy centres on our parks will provide tenants at the site with greater resilience, more competitive energy and a pathway to fully net zero carbon in occupation. As the energy centre is managed by a separate entity, all maintenance and repairs are delivered cost free with no risk to the occupier. We estimate a saving of between five and ten percent on grid energy bills, and the energy centres are also upgradable if extra power is needed, such as by adding additional PV.”

Dan Poulson, co-founder at BasePower continued: “The need for the creation of alternative energy resources has never been greater and we are proud to have been selected by Tritax Symmetry for this project in Biggleswade along with multiple energy projects on their other sites. Across our business we currently operate ten energy centres in the UK with a further 20 in development. Through their lifecycles we invest to enhance each site to deliver increasing levels of decarbonisation as client requirements evolve.”

Rob Pitt, Director – Operations at Rolls-Royce Solutions UK commented: “This project has been a great opportunity for collaboration and partnership with the client team from initial concept design through to project delivery and ongoing operational support. Our extensive product portfolio and system capabilities enabled us to provide an integrated microgrid solution that enhances the local grid supply and delivers on the brief for cleaner, resilient power that can flex in line with site demands”.

Hellmann Logistics Expands in North Germany

Posted on by David Priestman

Hellmann Worldwide Logistics has opened a new branch in Neumuenster. From the site located 50 km north of Hamburg, road activities in Schleswig-Holstein are to be further expanded. The aim is to develop the company’s own network in the strategically important region between Hamburg and the Danish border and to establish further general cargo lines. At the same time, the logistics company wants to further enter the Scandinavian region through strategic expansion in the north. With the opening of the new location, Hellmann is also responding to the increased demand for storage facilities available at short notice between the Port of Hamburg and Scandinavia.

Both the location and the technically state-of-the-art 4,500 m² logistics facility offer long-term and strategic advantages for the distribution network. Thus, the new branch also has the corresponding growth capacities to meet the needs of both existing and new customers. At the same time, the location will be integrated into the general cargo network called NG.network, which was successfully launched under the new brand on January 1, 2023. As the largest network partner and as a shareholder, Hellmann is now represented in the cooperation with 17 branches and, together with NG.network, is significantly driving the further development of the joint Germany-wide network.

“The decision to open our own branch in Neumuenster was made for various reasons: The region in the triangle of Neumuenster, Crivitz near Schwerin and Hamburg offers a lot of potential, especially with regard to the food industry as well as renewable energies, which we want to use even more in the future. By selecting this location, we are strengthening the network and thus also our capacity and service quality,” says Jonathan Adeoye, COO Road Germany & West Europe, Hellmann Worldwide Logistics.

Since its foundation over 150 years ago, Hellmann Worldwide Logistics has developed into one of the largest international logistics providers in the world. With more than 12,300 employees, the company is active in 60 countries and generated sales of around EUR 4 billion in 2021.The range of services includes classic forwarding services by truck, rail, air and sea freight, as well as a comprehensive range of CEP services, contract logistics, industry and IT solutions.

Logistics Investors set to focus on ‘First Mile’

Posted on by David Priestman

There could be increased appetite from investors for ‘first-mile’ logistic assets as global supply chain disruption drives a need for firms to improve upstream, business-to-business supply chain logistics, according to a new report from leading global property advisor Knight Frank.

Knight Frank’s latest Future Gazing Report explores the changing requirements and opportunities for first mile logistics, including how the need for increased resilience is driving a reconfiguring of supply chains, evolving infrastructure requirements and the relocation of manufacturing hubs. The report also analyses the areas in which these trends could create new opportunities and requirements for industrial and logistics real estate.

Knight Frank’s report explores how firms’ safety stock requirements increase in line with upstream spikes in supply lead times. If safety stock accounts for 20% of a firms’ UK inventory, and maximum lead times increase from 100 days to 140 days (or 40%) due to supply chain shocks generated by trade tensions, labour shortages and COVID-related shutdowns and shipping disruptions, firms need to raise their total inventory holdings by c. 8% to protect their order books.

As well as holding additional safety stock, many manufacturers are planning to diversify and invest in their supply chains to improve visibility and security, which could provide opportunities to grow UK manufacturing as firms weigh up the benefits and costs of reshoring operations.

Firms across a range of industries are considering reshoring. According to Knight Frank’s analysis, reshoring discussions are currently most prevalent among pharmaceuticals and healthcare-related industries, supplemented by automotive firms, including those focused on alternative fuel vehicles, technology and biotech firms. A relocating or diversifying of production bases will likely necessitate a change in the configuration of the supply chain.

Knight Frank analysed and ranked 41 UK ports based on their suitability for future logistics investment and development given their potential role in shortening supply chains and mitigating supply disruption. Accounting for various factors including port capacity, import and export growth forecasts and access to consumer markets and labour, the analysis found that Liverpool, ranking first for forecast export growth and in the top three for access to consumer markets and skilled labour, emerged as the top location for port-centric logistics potential. Grimsby & Immingham and London ranked second and third.

Claire Williams, Industrial and Logistics Research Lead at Knight Frank, commented: “The rise of e-commerce has led to considerable change at the consumption end of supply chains, with additional costs and facilities being allocated to this part of the supply chain in order to raise service levels and reduce delivery times. However, rising costs and delays at the production end of the supply chain are driving a rethink of the locations of these facilities and the transport connections linking them to downstream operations.

“There is increasing awareness of the opportunities in the first mile of the supply chain. As we enter the next phase of the economic cycle and perhaps a new era for global trade, logistics investors and operators must look to supply chains, assets and opportunities that can provide stability for their operations and returns. First mile markets can enable firms to build and maintain a secure and responsive supply chain for their end users. This demand will continue, with the potential to create attractive opportunities for income-driven investors looking to deploy capital into assets underpinned by strong structural tailwinds.”

UPS Supply Chain Opens Madrid Facility

Posted on by David Priestman

UPS Supply Chain Solutions (SCS) has announced the opening of its new facility in Madrid. The brand-new 6500 sq.m premises will be a main point of distribution for the Iberian Peninsula, connecting the region’s growing tech and healthcare industries pharmaceutical and medical technology industries to UPS’s smart global logistics network that serves customers in over 220 countries and territories.

Equipped with 7500 pallet positions and 25000 shelf locations, the facility provides end to end visibility for critical high-value, time sensitive shipments and is currently processing about 81,000 units per quarter. It is also LEED Gold certified with solar panels for green energy generation.

“We are focused on creating both efficient trade lanes for our customer to grow as well as useful technologies for online, real-time inventory visibility and critical order management with around-the-clock customer support,” says Gonzalo Vidal, Contract Logistics Manager for Spain, Italy and Portugal at UPS SCS. “Our goal is to guarantee supply chain resilience for our customers as their businesses navigate the demands, challenges, fluctuations and opportunities of the market.”

The Madrid facility is the 4th UPS SCS one to open in 2022, which also saw the unveiling of a new state-of-art building in 32 000 sqm Roermond, NL; selected for its central location and excellent ground, ocean, rail and air connections, these premises will also house the first UPS SCS Innovation Centre in Europe.

Spare Parts Warehouse Stores 10,000 Tyres

Posted on by Keith McKinley

A spare parts warehouse in Lugo, Spain of Recambios FRAIN, a leader in the parts sector for all types of vehicles, has the capacity to store more than 10,000 tyres thanks to the storage systems installed by AR Racking.

The warehouse has, on the one hand, adjustable pallet racking in which not only larger volume tyres are stored stacked on pallets, but also other types of products and accessories marketed by Recambios Frain; and, on the other, Very Narrow Aisle (VNA) pallet racking, where the tyres are stored directly on the structure itself. Overall, more than 10,000 tyres of varying height and width. The racking has been fitted in such a way that it allows both pallet and picking operations.

The combination of both systems provides the customer versatility and adaptability to the different volumes, direct access to the goods as both are selective systems and high-density storage thanks to the reduced width of the aisles with the incorporation of VNA racking. The project was completed in just 30 days from initial contact to the delivery and final assembly of the storage systems.

Recambios Frain started operating in 1992 and has not stopped growing since, thanks to the extensive range of products that it offers the market. According to Francisco Dorado, assistant general manager at the company, “with this 7,000 m2 warehouse we were looking to improve the organisation and handling agility and increase the number of units of some of our 500,000 references”. With a workforce of over 140 employees, Recambios Frain offers technical management services, diagnosis, rental space, industrial supply and B2B e-commerce.

“AR Racking’s adjustable pallet racking systems are solutions that can be adapted to all types of products, spaces and operations. They are also easily combinable and adaptable to changing needs”, explained Ricardo García, AR Racking Sales Representative.

About AR Racking:

AR Racking is part of the Arania Group, an industrial group of companies with extensive experience and scope, and with a multi-sectoral activity based on the transformation of steel that dates back more than 80 years. AR Racking provides the market with a wide range of solutions with high certified quality standards and a comprehensive project management service. AR Racking’s industrial storage systems stand out for their innovation, reliability and optimum efficiency.

Logistics Property Firm Appoint Poland MD

Posted on by David Priestman

The Accolade group, which invests in premium industrial and logistics property, has a new addition to its team. Jarek Wnuk, with his more than 21 years of experience in the commercial property sector, is the new Managing Director for Poland. He has previously worked for international real estate agency and global investment and development companies.

“I’ve been following the success Accolade have had in building a portfolio of modern industrial parks for a long time now. In terms of industrial, logistics, and manufacturing infrastructure, the Polish market is one of the fastest growing in Europe. With that in mind, I consider the consolidation and development of Accolade’s position in that market a significant challenge which I’m looking forward to immensely.” said Jarek Wnuk, who, in his role as Managing Director for Poland, will be responsible for managing Accolade‘s activity in Poland as well as the development of the project portfolio and finally for the preparation and implementation of fundraising activities.

“From a strategic perspective, Poland is a very important market with huge potential and I believe that Jarek’s extensive experience in the commercial property sector will be an enormous plus for us,” remarked Accolade Group CEO, Milan Kratina. Accolade owns 26 logistics parks in Poland, the total leasable area of which is approaching 1.5 million m². The group has so far invested nearly 28 billion CZK (over a billion EUR) in Poland and are planning to plough a further 12 billion CZK (around half a million EUR) into Polish activities.

Before joining Accolade, Jarek Wnuk was General Manager and a member of the board at private equity firm Bluehouse Capital. Previously, he held senior management positions at logistics and property companies Goodman and King Sturge. Jarek Wnuk graduated from the Faculty of Finance and Banking at the Warsaw School of Economics, along with completing a year of study at the College of Estate Management in Reading.

Accolade Holding, a.s. operates in six European countries, where it invests in modern and sustainable infrastructure for global e-commerce, manufacturing and logistics brands. It owns a network of 45 BREEAM-certified industrial parks in the Czech Republic, Poland, Germany, Spain, the Netherlands and Slovakia, guaranteeing a sustainable and environmentally friendly approach. The group has now completed 2.6 million m2 of commercial properties, which it leases to almost 260 tenants worldwide. More than 8 million m2 are in the pipeline.

Accolade also invests in brownfield redevelopment. Their share in the company’s portfolio is currently around one third. A building in the redeveloped compound of Strojírny Cheb became the first project in the Czech Republic to receive the Outstanding grade and a record score of 90.68% according to the BREEAM global sustainability rating. In 2014, the group established the Accolade Industrial Fund (Accolade Fund SICAV p.l.c.), an industrial real estate fund open to qualified investors, of whom it now has over 2,800. The value of the fund’s portfolio has exceeded 1.4 billion EUR. It has ranked as the best performing real estate fund in the Czech Top Real Estate Funds ranking several times in a row. In 2017, the group bought the operator of the second busiest airport in the Czech Republic, Brno-Tuřany, and is preparing a polygon near Stříbro to serve as a research centre for the development and certification of autonomous driving vehicles.

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