Prologis invests in new London offices

One of the UK’s leading logistics property owners and developers, Prologis UK, has recently opened new London headquarters, moving into a 5,000 sq. ft. office space on Great Pulteney Street in vibrant central Soho.

The move comes at a time when the business looks to continue servicing and developing the seven of its 22 Prologis Parks situated in the capital.

Prologis has made a number of high-profile appointments, in line with its strategic approach to prioritise development within London & the South East. The London team has welcomed five new members in 2022, with the office also homing the global Private Capital Raising team.

The new offices include desk capacity for 30 people, nine meeting rooms of varying sizes as well as a breakout space to accommodate 26. With an industry-wide need to better understand and develop the urban logistics market, Prologis’ move to its new London location supports its current prioritisation of the urban and last mile delivery and provides a new base in the capital for investors, stakeholders, and customers to meet.

Prologis closer to customers

Speaking about the new office space, Paul Weston, regional head of Prologis UK, said: “Our new Soho office puts Prologis closer to our customers and allows us to have a strong foothold in an area where we are focusing a lot of our commercial attention. London is a global city, and a lot of our customers have an international presence, so establishing a new, modern location for our London team to maintain these relationships is of real importance.

“We might be known for our buildings and Prologis Parks, but our vision is people-centric. Not only does this space align with our company culture but it puts us in the middle of a dynamic, ever-evolving city that we are proud to be a part of.”

Prologis’ UK headquarters are located at Blythe Valley Park in Solihull.

 

Second phase of Redditch scheme approved

Stoford has secured planning consent for the speculative development of almost 450,000 sq ft of new industrial and logistics accommodation near Redditch.

The leading commercial property developer will build two new warehouse units at Redditch Gateway, a multimillion pound logistics and manufacturing scheme off the A4023 Coventry Highway.

The new net zero carbon units will comprise 160,208 sq ft and 286,328 sq ft respectively and will be developed on the southern side of the 78-acre Redditch Gateway site, which is fully serviced and delivers a 9.5 MVA power supply.

Features will include integral hub and office space, 15m clear eaves height, secure yard space and parking, as well as the creation of an external gym area and upgrades to the existing trim trail.

Construction of the new units is expected to begin imminently, with work likely to be completed in autumn 2023.

Dan Gallagher, Joint Managing Director of Stoford, said: “We are very pleased to have gained approval for the second phase of development at Redditch Gateway, which will meet a growing demand from regional occupiers. When complete, the scheme will deliver almost one million sq ft of highly sustainable new and high quality office, logistics and manufacturing accommodation and provide support to the local economy through new jobs and investment opportunities.”

Gary Woodman, Chief Executive of the Worcestershire Local Enterprise Partnership, said: “It is great news to have confirmation of planning approval for more commercial units at the Redditch Gateway site in Worcestershire. We recognise that many businesses in the region are looking for new units to expand or invest their business into, and this development will help that to become a reality in Worcestershire.

“This is a key commercial site for the county and supports the Worcestershire LEP’s 2040 Plan for Growth to increase the number of commercial premises available to support the growth of the local economy.”

Anita Bhalla, Interim Chair of GBSLEP, said: “This is another great step forward for Stoford and the wider partners in fulfilling the vision for Redditch Gateway. It will provide quality logistics space for regional occupiers looking for a central location with good transport infrastructure. The £1.8 million grant GBSLEP contributed to this project has helped to unlock the potential of this site, creating jobs and boosting local employment and skills opportunities. Sites like this are vital to growing the local economy and driving inclusive, sustainable economic growth.”

Leader of Redditch Borough Council, Cllr Matt Dormer, said: “The approval of this application marks the next vital stage in the regeneration of Redditch, as we continue to unlock previously untapped potential and inspire progress with exciting projects like this one. This council continues to deliver on our promises to improve our town; creating jobs for and enhancing the skillset of our residents and providing opportunities for local people to work close to home. This will help propel us into the future, boost our local economy and in turn make our town a fantastic place to live and work.”

Cllr Tony Jefferson, Leader of Stratford-on-Avon District Council said: “This is a key employment location as identified in our Core Strategy. At a time when UK economic growth is stalling, the approval of this scheme will be a real tonic to the economic development of the area and will create a great many employment opportunities.”

Councillor Marc Bayliss, Cabinet Member for Economy, Infrastructure and Skills, Worcestershire County Council, said: “We are pleased to see the continued development at Redditch Gateway; it presents the county with another prime investment site with superb connectivity and the potential to see more jobs created. I look forward to seeing the delivery of this phase to help us achieve our vision of making Worcestershire a connected, creative, dynamic economy for all.”

Tim Davies, Senior Development Manager, Homes England, said: “Securing planning for the scheme is a fantastic achievement testament to Stoford’s capabilities. We are currently working through conditions with Stoford to enable them to commence development in the next few months.”

Stoford is lead developer for Redditch Gateway, working alongside landowners, The Gorcott Trust and Homes England. The scheme is being supported through a blend of grant and loan funding of £1.7 million from Worcestershire Local Enterprise Partnership (WLEP) through its Growing Places Fund and a £1.8 million grant from Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP).

Redditch Gateway is being marketed by Burbage Realty, Colliers International and Savills.

 

Verdion completes iPort speculative phase

Pan-European logistics real estate specialist Verdion has completed a further facility at iPort, the multimodal logistics hub just outside Doncaster, bringing new Grade A space to the undersupplied Yorkshire market.

iP10 offers 259,266 sq ft of high-quality distribution space in a steel portal framed warehouse unit with double-storey offices, HGV and car parking and a secure 53-metre-deep yard.

It is the final completion in Verdion’s latest round of speculative development, which also included two buildings leased to Woodland Group and Euro Pool Systems respectively. Verdion has also signed a new long-term lease with Maritime Transport, which has doubled the size of its facility at iPort to reflect its growth in the region. Unit iP2f is also currently available offering 174,380 sq ft for immediate occupation.

Jamie Young, Asset Manager at Verdion, said: “With clear demand in this Yorkshire market for high quality logistics space, this new unit offers over 250,000 sq ft with immediate availability and outstanding road and rail transport links. It also means that our latest speculative development programme has been delivered very smoothly despite wider supply chain challenges in the market and, with occupier appetite showing no signs of slowing, we are now focussed on bringing forward future opportunities at the park.”

iPort is one of the UK’s most advanced multimodal logistics hub, with capacity for a total of 6 million sq ft of 24/7 of logistics and light industrial accommodation close to Junction 3 of the M18 and the East Coast Main Line. It also benefits from an award-winning multimodal on-site rail freight terminal. iPort Rail, is increasingly being used by companies based on-site and across the region looking to cut carbon across their supply chains, with rail connections to major UK sea ports.

Other occupiers include Amazon, CEVA, Fellowes, Lidl, Dusk, Kingsbury Press, Woodland Group and Euro Pool Systems, while its remaining 1.7 million sq ft includes capacity for buildings of up to 800,000 sq ft.

Garbe acquires brownfield site in Salzgitter

Garbe Industrial Real Estate GmbH has acquired an industrial wasteland in Salzgitter (Lower Saxony, Germany). Following a comprehensive redevelopment of the site, a high-quality and sustainable new building for the storage and handling of industrial goods is to be constructed on the 51,000 sq m site. The logistics property is scheduled to be commissioned in the third quarter of 2024. Garbe Industrial Real Estate is investing around €43m in the conversion project.

The Hamburg project developer took over the property from Alstom. The deal came about as a result of the good cooperation between the two companies. Garbe Industrial Real Estate had previously realised a 30,000 sq m logistics property for the rail vehicle manufacturer on its factory premises in Salzgitter in 2014. The area now acquired is in the immediate vicinity.

Before construction can begin, the site must be cleared of contamination – including foundations of former buildings, concrete slabs, shafts and possibly also explosive ordnance. The potentially contaminated soil will be carefully removed and professionally disposed of. Then a levelling layer is applied and its surface is completely sealed.

“In the process, we bring our many years of experience in dealing with so-called brownfields to bear,” emphasises Adrian Zellner, Member of the Executive Board at Garbe Industrial Real Estate. “With the revitalisation of this area, which has been lying fallow for years, we are enhancing the value of the soil enormously, raising previously unused property reserves without sealing valuable green spaces and thus creating significant settlement potential.”

The complex conversion process is completed by the construction of a modern logistics property with a total area of 32,000 sq m in three fire compartments. For protection, a foil is drawn under the floor slab so that substances that may be hazardous to water can also be stored. At least 28 dock levellers and three ground-level sectional doors are planned for loading and unloading trucks. There will be 140 parking spaces for cars and six for trucks in the outdoor area. Some of them will be pre-equipped with e-charging stations.

A photovoltaic system will be installed on the entire roof area to generate renewable energy. Several green spaces are planned on the property. In addition, the logistics property will not be supplied with fossil fuels. This is entirely in line with Garbe’s corporate strategy of realising project developments with the highest sustainability standards, taking into account all ESG criteria. Garbe Industrial Real Estate is therefore also striving for certification of the property to at least the Gold Standard of the German Sustainable Building Council.

The location is characterised by its central position south of the city triangle of Hanover, Wolfsburg and Brunswick. It is only a few kilometres to the A 39 motorway, which connects Salzgitter in a northerly direction with Wolfsburg and the A 2 Dortmund – Berlin motorway, and in a southerly direction with the A 7 Hamburg – Ulm motorway. There is also a connection to the public transport system. The nearest bus stop is 200m away.

Initial talks with potential users of the logistics centre are already underway. Garbe Industrial Real Estate expects the centre to be let during the construction period.

 

Bis Henderson Space named as a CCS supplier

Bis Henderson Space has been named as a supplier on the Crown Commercial Service (CCS) Storage, Distribution, Kitting and Associated Services (RM6282) Framework Agreement.

Launched in February 2022, the commercial agreement will last for four years and offers public sector organisations in the UK, such as central and local government authorities, emergency services and the NHS, access to a range of storage, distribution and kitting solutions and services under one agreement. The agreement includes UK and international storage and transportation, quality control of items and specialist collection and delivery services.

What does this mean for the public sector?

The Crown Commercial Service is an executive agency of the Cabinet Office; supporting the public sector to achieve maximum commercial value when procuring goods and services.

In 2020/21, CCS helped the public sector to achieve commercial benefits equal to £2.04bn – supporting world-class public services that offer best value for taxpayers.

For public sector organisations, the CCS agreement delivers significant and sustainable cost savings through its commercial activity and aggregated procurement arrangements. Suppliers are carefully evaluated during the tender process, and pre-agreed terms and conditions offer clients sound contractual safeguards.

The framework is available to all central Government departments and other UK public sector bodies, including local authorities, charities, executive agencies, the health sector, police authorities, fire and rescue services, education providers and the devolved administrations.

Steve Purvis (pictured), Managing Director at Bis Henderson Space, commented, ”We’re delighted to be named as a supplier on this framework and to have the opportunity to build on our excellent track record working with Government and the Public Sector. As an SME, this framework agreement allows us to open up our services in storage, kitting and transport to Crown Commercial Services customers, which is pivotal to our business direction and growth.”

Bis Henderson Space has been awarded a position on the following lots for RM6282:

  • Lot 3a – Storage
  • Lot 3b – Kitting and Fulfilment Solutions and Service
  • Lot 3c – Transport and Distribution

Northants logistics units attract growing businesses

St. Modwen Logistics, one of the UK’s leading logistics developers and managers, has announced that two growing businesses – bespoke freight company Transglobal and leading paper merchant Premier Paper – have moved into St. Modwen Park at Stanton Cross, Wellingborough, bringing much needed local investment and jobs.

St. Modwen Park at Stanton Cross, Wellingborough is located within the logistics “Golden Triangle”, offering easy access to the A14 and A45 for east to west country connectivity, and quick links to the A1 and M1 road network. Stanton Cross is a flagship mixed-use development district for Northamptonshire which is gaining more than £1bn of investment in Wellingborough by Stanton Cross Developments LLP. Once finished it will feature 1.5 million sq ft of high-specification industrial, logistics, leisure, retail and office space, in addition to opening up access to modern transport links and infrastructure. Furthermore, it will provide 3,650 new homes along with community facilities – offering a large local workforce for businesses looking to operate in or relocate to the area.

St. Modwen Park at Stanton Cross, Wellingborough offers 314,500 sq ft of sustainable warehouse space, initially comprising three buildings – 96,000 sq ft, 43,500 sq ft and the development of a further 175,000 sq ft speculative unit, which will start in Q3 2022. The initial phase has been delivered by principal building contractor, MCS Group.  Future developments of 600,000 sq ft across three parcels of land will offer additional logistics space for the area.

Keir Edmonds, Group Managing Director of MCS Group, said: “We are very proud of this project. We have delivered two very high-quality warehouse units on time for St. Modwen, according to the 39-week programme, at this impressive development at Stanton Cross. As a result, we have a very happy client and two tenants who are now able to commence the fit-out process right on schedule.”

Transglobal signed an agreement for the 96,000 sq ft building, which is a multi-use warehouse used to provide freight solutions by land, sea and air. The move will aid its rapid business growth and accommodate its customers’ evolving needs.

The 43,500 sq ft building has been let to wholesale paper and materials supplier Premier Paper. The unit will allow the company to expand into a larger warehouse space, following the diversification of the business. It will also facilitate its growth, and continue providing stocks of paper, print substrates and packaging to customers across the UK.

The completed buildings, at St. Modwen Park at Stanton Cross, Wellingborough, come with sustainability benefits including features such as PV solar panels, electric vehicle (EV) charging points and will deliver BREEAM Very Good and EPC A accreditations. Infrastructure has been installed to accommodate up to 20% of the parking spaces, which will be served by EV chargers.

Polly Troughton, Managing Director at St. Modwen Logistics, said: “St. Modwen Park at Stanton Cross, Wellingborough, is set to become a thriving commercial hub and we’re delighted to have created the space to accommodate the needs of Transglobal and Premier Paper and offering larger warehouse space which will enable them to continue to grow and succeed.

“The park is set to deliver new job opportunities and provide sustainable warehouse space for rapidly expanded businesses such as these. We welcome them to Wellingborough, which will help to support the town’s wider regeneration.”

Steven Knight, Managing Director at Transglobal, said: “Moving into this additional facility at Wellingborough will not only support our business growth and expansion, but also help us to accommodate the growth of our clients.”

David Jones, Group Marketing Director at Premier Paper Group, said: “We’re pleased to have signed a deal with St. Modwen Logistics.  This new high quality and flexible warehouse facility becomes our latest “flagship” branch which will support our future growth further cementing our position as being one of the most successful businesses of our type in Europe.”

AXA IM Alts acquires Spanish last-mile logistics asset

AXA IM Alts, a global leader in alternative investments with €188bn of assets under management, has completed, on behalf of clients, the acquisition of a sizeable and newly developed last-mile logistics asset in Barcelona, Spain. The investment opportunity was sourced from Acciona, a global leader in providing regenerative solutions for a decarbonized economy, who acted as developer for the project and pre-let the facility to a leading global e-commerce operator on a long-term lease.

The c.58, 000 sq m asset comprises a bespoke last-mile logistics operating centre spread across 13,350 sq m of high-quality warehouse space alongside 44,540 sq m of parking, with capacity to accommodate more than 600 delivery vans. The asset will have a very strong covenant from day one, while its innovative design improves current best-practice distribution systems, supporting long-term value.

Located in central Barcelona, the second most populated city in Spain, the asset will benefit from a strategic logistics location with good transport connections due to its proximity to the main highways and ports. Additionally, the asset borders one of the main residential districts in the city centre, creating a genuine last-mile logistics network and supporting the growing demand for rapid e-commerce delivery time frames.

Due to the scarcity of vacant development land of meaningful size in the area, this acquisition presents a significant opportunity to increase AXA IM Alts’ exposure to high-quality last-mile logistics in Spain. This acquisition adds to the business’ portfolio of 158 European logistics assets located across key distribution hubs in 11 countries, and brings its European logistics assets under management to over €5bn, spread across c.5.5m sq m of high-quality primarily big box or last-mile urban logistics space.

Blackacre completes Ipswich logistics deal

JMW Solicitors’ Real Estate team has advised Blackacre on a £13m deal with Lay & Wheeler that will see the development of a new 114,000 sq ft unit at Port One Logistics Park in Ipswich, UK.

The wine merchant has agreed a £13.85m senior development loan with Cain International to forward-fund the delivery of Unit 6.

Lay & Wheeler was founded in 1854 and remains one of Britain’s longest-standing fine wine merchants – it is a market-leading name globally and has won a multitude of awards.

Port One is a strategic development located close to Ipswich and Felixstowe Port, benefiting from direct access to Junction 52 of the A14, a major arterial route. Its proximity to Felixstowe makes it the most centrally located customs site within the Freeport East Zone. The Zone includes both Felixstowe and Harwich, making them, combined, the UK’s largest container port.

Simon Maddox, Real Estate Partner at JMW Solicitors, said: “We’re pleased to have been able to support Blackacre on this latest deal at Port One – it will no doubt prove an ideal location for Lay & Wheeler’s new warehouse and head office as the business continues to grow.

“There remains a significant shortage of industrial and logistics stock entering the market – with a record-breaking volume of space under offer at the end of Q1 2022, demand will remain high for high-quality, well-located schemes like Port One.”

Development work for Unit 6 is now underway on site and is expected to reach PC by November 2023.

JMW Solicitors is one of the UK’s leading full service law firms, with offices in Manchester, Liverpool and London.

 

Active Ants to open UK fulfilment centre

Active Ants, a subsidiary of the bpost group, will open its fifth fulfilment centre in September 2022. The newest facility is located in Northampton, England and is owned by M&G Real Estate, the property investment arm of M&G plc.

After operating two successful sites in the Netherlands, Active Ants has expanded into Belgium and Germany in recent years. “Active Ants wants to be the best fulfilment company in Europe”, says Co-founder and Managing Partner Jeroen Dekker. “We are delighted that our arrival in the UK will further increase our presence in Europe and we believe we are moving into one of the most exciting online markets.

“With our strong focus on innovation and automation, we offer tailor-made business-to-consumer (B2C) logistics for (SME) web shops. We are convinced that this will create superior value for our customers.”

Founded in 2010 with the idea of making e-fulfilment more accurate and efficient through innovation, automation and working with robots, Active Ants has since grown into one of the larger players in the Netherlands with over 250 customers and more than five million orders per year.

Northampton is situated in the heart of England. The Brackmills Industrial Estate is the centre of e-commerce logistics in the United Kingdom. Dekker comments: “This combination makes it the perfect location for our e-fulfilment activities. We will be close to our customers and have good connections with last-mile distributors.

“In our search for the right location and the right building, it was important for us to find a building that fulfilled our mission and values. The ‘outstanding’ BREEAM certification of the Brackmills Estate means that the building performs at the highest environmental level, which fits perfectly with our sustainable – and highly automated – way of working. Active Ants is committed to sustainable relationships with all its stakeholders: customers, employees and the community.”

Michael Wood, Portfolio Director at M&G Real Estate, comments: “With this scheme, M&G is delivering on its commitment to providing high quality, ESG-led schemes which meet the exacting requirements of modern occupiers, and we are delighted to be welcoming an innovative international operator with this significant pre-let.”

“Storage, order picking, packaging and sorting are also fully automated in this brand new fulfilment centre,” says Dekker. “For order picking, employees work efficiently together with robots. The receipt of goods and the return flow remain manual processes. This mechanisation ensures efficiency, high quality and a pleasant working environment for our employees. The set-up is unique in the world.”

Warehouse with AutoStore

The basis of this warehouse is the Autostore, a unique system where goods are stored very compactly in bins. On top of the AutoStore is a framework of rails, on which robots ride. By means of intelligent software, a robot knows exactly which bin to take to the employees at the picking stations. Autonomous Mobile Robots (AMRs) bring empty boxes to the employee who fills them with goods delivered by the storage robots.

The innovative AutoStore solution takes up six times less space than in a traditional warehouse. This goods-to-man system has a very low footprint. The system stores up to six times more stock per square metre, and the robots reuse their own energy, so electrical consumption is minimal.

The carrier robots drive to various packing machines which select the ideal size boxes and close them to size – weighing them and providing a shipping label, so that no padding material is needed. As a result, Active Ants transports on average 40% less air to the customer. This also allows it to transport more packages in a truck and reduce its CO2 emissions even further.

Once filled, closed and printed, the carrier robots pick up the parcels and sort them out to their respective carriers.

Also in Northampton, Active Ants‘ specially developed box-closing machines with built-in printer will be used. Dekker says: ”This allows every customer to get their own custom-printed box. Through this unique functionality, we enable large, but now also smaller webshops, to offer customised packaging. Keeping pre-printed boxes in stock is no longer necessary. This saves our customers costs and also reduces their footprint.”

 

Logistics company commits to Hams Hall

Prologis, one of the UK’s leading developers of logistics property, has agreed a 10-year lease for a new 131,780 sq ft unit, currently under construction at Prologis Park Hams Hall. Birmingham-based logistics and distribution company LTS Global Solutions will be moving into DC3, which is due for completion in the summer, as part of its ambitious expansion plans.

LTS Global Solutions, advised by Gerald Eve, provides a comprehensive range of services within logistics, transport and shipping worldwide. It is partnered with some of the world’s major shipping line and airlines to facilitate the provision of bespoke supply chain solutions which include storage, Just In Time delivery and international freight forwarding.

Like all new Prologis UK buildings, DC3 at Prologis Park Hams Hall will meet the highest standards of sustainability and is planned to meet net zero carbon emissions in construction. Additionally, the building will aim to be BREEAM ‘Excellent’ as well as achieving an EPC A rating.

Located only 10 miles from Birmingham City Centre and 1 mile from Junction 9 of the M42, Prologis Park Hams Hall is already home to Jaguar Land Rover’s Battery Assembly Centre and is often described as one of the leading manufacturing and logistics locations in the UK. The wider Hams Hall park also features an on-site rail freight terminal and is home to global brands such as BMW, Sainsburys and DHL.

Tom Price, capital deployment and leasing director at Prologis UK, commented: “Welcoming LTS Global Solutions as one of our newest customers is testament to the growing demand for prime logistics real estate space right now – and the business will certainly be in good company at Prologis Park Hams Hall.

“Dave and his team have growth in their sights and we’re extremely proud that we’ve been able to provide a high quality facility in a prime location that will allow the business’ expansion plans to come to life.”

Dave Hands, managing director at LTS Global Solutions, adds: “Moving into the new unit at Hams Hall signifies an exciting time for us. It’s been a pleasure working with the Prologis team and we can’t wait to move in and push on with our plans to expand our operations further.”

John Sambrooks, Partner for Gerald Eve, said: “The successful lease of Ham Hall illustrates the continued demand for well-located, high-spec industrial facilities. Its strategic location, combined with LTS Global Solutions’ track record of industrial supply chain solutions, makes this an attractive dynamic for the company’s significant expansion plans. We’re delighted to have secured the premises for LTS, and look forward to seeing the company grow over the coming years.”

 

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