Tag: distribution centre|logistics|warehouse

Leading European industrial developer CTP has provided tailor-made logistics space to international technology and services provider Bosch. The company has leased a distribution centre in one of the largest and most sought-after industrial parks in the Czech Republic. Bosch will move its operations from the Netherlands to CTPark Bor in western Bohemia, where it will have over 15,000 sq m of lettable area.

CTP will provide Bosch with a cross-dock, which has the advantage of improved logistics, receipt and expedition of goods. The space can be expanded in the future. Bosch will use its 15,688 sq m primarily for the storage of electronic components and camera systems but the plan also includes offices for local management and employees.

“We are very happy to have been selected by this globally renowned company with a history of well over a century,” commented Jakub Kodr, Senior Business Developer at CTP. “We believe their decision was significantly influenced by the readiness of our buildings, fast, tailor-made space solutions and the location, which will help the company to streamline its delivery process from Germany to other European countries. Bosch and CTP also share a vision of doing business sustainably.”

Bosch’s decision to relocate to CTPark Bor was further supported by the high-quality facilities of the industrial warehouse and the use of the latest technologies, including charging points for electric vehicles. In addition, CTP provides its clients with sports facilities, canteens, accommodation, accessible medical care and support in finding new workforce. Bosch will now employ around 100 people in its warehouses.

The German engineering and technology company Bosch operates in more than 60 countries, its products are sold in 125 locations around the world and its workforce amounts to 500,000 employees. Besides Bosch, CTP’s portfolio includes other hi-tech tenants, such as Autoneum, ABB, Thermo Fischer Scientific, Honeywell and Garrett Motion.

CTPark Bor

The Bor park is one of the largest industrial parks in the Czech Republic, with a total area of 135 hectares. It is located on a highway near Tachov, around 15km from the German border and 50km from the city of Pilsen. The park offers facilities for manufacturing, storage and logistics as well as accommodation for the employees of local companies.

In total, the Bor park provides approximately 3,500 jobs. Construction having started in 2005, the park is being continuously expanded with both additional industrial properties and residential and service facilities. Employees can already benefit from several restaurants, a medical centre, training and meeting rooms as well as sports and recreational facilities.

Current tenants of the park include Primark, DHL and TechData. The largest tenant of the Bor complex is LOXXESS Bor, which leased 60,500 sq m of space in autumn 2020. It was the largest transaction of last year.

A new £30 million advanced helicopter logistics hub will be delivered by real estate developer Graftongate on behalf of Italian aerospace giant, Leonardo.

The 210,000 sq ft project in Yeovil, Somerset, will see the consolidation of eight existing warehouses into one all-encompassing logistics hub.

The single-site logistics facility will help support Leonardo Helicopters’ global fleet through the warehousing of components and tooling in a state-of-the-art development, which has sustainability at its core.

Its features include rainwater harvesting tanks for brown water services, full LED lighting throughout the facility and a heat recovery system in the main warehouse, which will be complemented by a modern office temperature control system. In addition, there will be a bank of electrical vehicle charging points.

Graftongate will deliver the new development on a 35-year lease in partnership with a CBRE Investment Advisory retained pension fund. Leonardo’s logistics partner, Kuehne+Nagel, will operate the new facility under a 10-year logistics contract.

Construction of the development will commence in August and is scheduled for practical completion in Q4 2022.

Jamie Hockaday, Director at Graftongate, said: “We are very pleased to have collaborated with Leonardo Helicopters and Kuehne+Nagel to aid the delivery of the UK’s only onshore helicopter manufacturer.”

 

The latest research from Knight Frank shows that 40 million sq. ft. of new warehouse space in developments larger than 50,000 sq. ft. is scheduled for completion in the UK during 2021.

This compares to the 20 million sq. ft. completed last year, as long-term strategic planning of retailers in response to ecommerce growth has led to a rise in development activity. Much of this new space is already committed, with retailers and distribution companies opting to satisfy their requirements through build-to-suit solutions.

Vacant warehousing remains tight across the UK, with 46 m sq. ft. of space currently available, which represents 10 months’ worth of supply at current take up levels. However, most of that space is in secondhand units that either do not have the right specification or in the right location. Due to robust levels of take up, the level of availability, particularly of high-quality space, has diminished over the course of 2020 and this is driving development.

In 2020 online sales accounted for 27.9% of total retail sales, and with non-essential shops closed ecommerce penetration rates reached a record 36.3% in January 2021. Retailers and distribution firms have responded by rapidly upscaling their operations by expanding delivery services, and this saw warehouse take up exceed 50 million sq. ft. in 2020, compared to 34 million sq. ft. in 2019.

Even as shoppers return to the high street, the internet will play a larger role in the retail market than it did before the pandemic. Retailers need to embrace omni channel retail to remain competitive. Knight Frank analysis shows that every billion pounds of online sales requires approximately 1.36 million sq. ft. of warehouse space. Online sales rose £34 billion YoY in 2020 and is expected to grow a further £41 billion over the next four years and this growth is driving additional requirements for warehouse space.

Charles Binks, Partner and Head of Industrial & Logistics at Knight Frank, said: “The robust forecast for online retail and increased competition for high-specification and well-located assets is driving development activity. Take-up over the past year has reduced the level of availability and Covid-19 has hampered construction, slowing the delivery of new stock to the market. Supply, particularly of high-quality space, has diminished. The level of occupier enquiries remains strong and many of the requirements logged last year have not been met. However, the availability of land or suitable sites remains a key constraint.”

Claire Williams, Research Associate at Knight Frank, said: “High levels of take up in developments larger than 50,000 sq. ft., and the chronic shortage of quality space, is encouraging both build to suit and speculative development. This is because many of the units currently available don’t offer the right space or the right locations to support the growth of online sales and B2C deliveries. There is a need for more urban warehouse space, located close to the customer, in order to replenish stock in the required timeframes.”

Competition for space will continue to drive rental growth over the next five years, as well as longer average lease lengths. The strongest annual rental growth is expected in London (3.2%), followed by the South East (2.7%) and Eastern (2.7%) regions. Returns for UK industrial and logistics over the next five years are expected to average 7% per annum, outpacing those on offer in other real estate sectors.