Tag: distribution centre|UK|warehouse

Mission Produce, a global leader in avocado marketing and distribution, is set to open its first UK facility at Goodman’s Crossways Commercial Park in Dartford, Kent.

Covering 101,659 sq ft, the highly-sustainable building will be used as Mission’s state-of-the-art ripening, packing, and forward distribution centre which is expected to help streamline import logistics and reduce transit times to UK customers.

Founded in 1983 and headquartered in California, Mission specialises in sourcing, producing and distributing fresh Hass avocados. It has an established network of 12 ripening and distribution centres globally, with avocado packing facilities in key locations including California, Mexico and Peru, and additional sourcing capabilities in South Africa. Mission leverages its global presence to serve retail, wholesale, and food service customers in more than 25 countries.

Paul Frowde, Managing Director at Mission Produce UK, said: “The opening of this distribution facility is a milestone that represents a significant opportunity for our business as we expand into the UK market.

“Goodman’s Crossways Commercial Park location was the ideal choice, blending a strategic location with a high-quality facility designed to streamline our operations. Its sustainable features and use of renewable energy are also expected to promote energy, cost and maintenance savings as we strive to maximise efficiency.”

Crossways Commercial Park’s strategic location, places 11.7 million consumers within a 60-minute drivetime. Its prime position, adjacent to Junction 1a of the M25, offers fast access to London and the national motorway network.

Developed to a BREEAM ‘Excellent’ specification, the facility promotes energy efficiency aligning with Mission’s strong Environmental, Social and Governance (ESG) credentials. It features a 490kWp rooftop array of solar photovoltaic (PV) panels, solar thermal hot water, rainwater harvesting and charging infrastructure for electric vehicles.

With the facility expected to open in early 2023, Mission is currently undertaking a highly specialised fit-out, including the installation of a 3,000 sq ft mezzanine and a variety of cutting-edge features. Grading visibility technology to reduce handling and minimise fruit damage, advanced testing machinery to determine stages of ripeness with precision, and specialised heating and cooling systems are just some of the systems being implemented to help Mission optimise its operations and provide customers with year-round supply of the world’s finest avocados.

The Crossways Commercial Park location will also be Mission’s first facility to feature “Mission Control” technology in dedicated ripening rooms. Using a specialised atmosphere control process, this innovative system can create the optimal environment for ripening, which in turn helps enhance product quality, extend product shelf life and reduce waste.

George Glennie, development director at Goodman, said: “Crossways Commercial Park is our most sustainable UK development, with cutting-edge technology and investment in on-site renewables.

“Combined with a prime M25 location, Crossways Commercial Park offers fast access to large consumer markets, maximising logistical efficiencies and supporting Mission in its next phase of growth.”

The news follows Goodman’s leasing of Crossways 138 – another unit in Crossways Commercial Park – to premium ingredients supplier, Albion Fine Foods, leaving just one 240,884 sq ft unit remaining.

Take-up of UK logistics space totalled 7.67m sq ft for Q3 2022, according to the latest research* from global real estate advisor CBRE. The aggregate for the first nine months of 2022 stands at 30.25m sq ft, which equates to 95.8% of 2021 and 92.1% of the record-breaking year of 2020 for the same period, signalling the sector’s resilience.

This represents a decrease of 30% compared with Q3 2021, which saw take-up reach 10.9m sq ft. A total of 29 deals have completed this quarter, a decrease of 25.6% compared with Q3 2021, which saw 39 deals complete. Speculative schemes accounted for almost half of total take-up at 46.9%, followed by build-to-suit at 34.7% and second-hand accounting for the remaining 18.4%.

Third-party logistics dominated at a sector level, accounting for 56.3% of total take-up for the quarter. This was followed by retail at 21.3%. The remaining 22.4% was split across supermarkets, manufacturing, motor and other, demonstrating that demand for logistics space is wide-ranging and that competition for units remains strong.

Take-up was widespread across the regions for the quarter. Yorkshire & North East led the way at 27.1%. This was followed by West Midlands at 20.7%, East Midlands at 19%, South East at 16.3%, North West at 9.3% and the South West at 7.5%.

Vacant available space increased from 5.73m sq ft at Q2 2022 to 6.51m at Q3 2022. This was due to a number of speculative buildings reaching practical completion during the quarter. However, with only 21 built speculative units available, there remains a significant under supply. The increase in completed units resulted in the UK vacancy rate increasing fractionally from 1.18% to 1.32%.

Jonathan Compton, Senior Director, UK Logistics at CBRE, said: “Despite the ongoing economic uncertainty, the logistics occupational market remains strong with a wide range of occupiers securing space across the country. The decrease in take-up this quarter points to a degree of normalisation in the market following a prolonged period of record-breaking numbers, however the under-offer pipeline signals towards another robust year for the sector.”

Annabel Nash, Senior Analyst, UK Logistics Research at CBRE, added: “We have seen a significant shift in the type of occupier taking space following a dominant display from online retail. Third-party logistics providers are now leading the pack, accounting for more than a third of total take-up year-to-date. Ongoing supply chain and shipping disruptions are resulting in longer lead times, driving retailers to extend their stock profile in the UK. Therefore, companies that do not have the sufficient infrastructure are turning to third-party logistics providers for fulfilment on their behalf.”

* CBRE tracks all warehouses in excess of 100,000 sq ft in size and with an eaves height of more than 10 metres. The UK vacancy rate refers to the buildings that are physically built and standing, capable of being utilised by an occupier immediately.