Global Network Becoming Carbon Neutral

Arvato Supply Chain Solutions has switched the energy supply of five more distribution centres in the USA to green electricity from wind and solar energy, aiming to be carbon neutral. Following the warehouse in Pleasant Prairie, Wisconsin, four distribution centres located in Louisville, Kentucky, and one in Valencia, California, now also obtain electricity from renewable sources. This will reduce annual greenhouse gas emissions by an average of around 3,100 metric tons of CO2. This is a further step in the sustainability strategy of the supply chain and e-commerce service provider, which, together with its parent company Bertelsmann, aims to be carbon neutral by 2030.

“To enable us to achieve this ambitious goal, all Arvato sites worldwide will be converted to green electricity,” says Mitat Aydindag, President of Arvato North America, explaining the strategy. “It underscores our company’s commitment to environmental protection and the responsible use of natural resources. It’s important to us that our success is measured not only by economic figures, but also by the measures we’ve implemented to build a more sustainable organization.”

In general, however, the supply of “true” green power, i.e. power from renewable sources such as solar and wind, is still very limited in the U.S., and making the switch is sometimes very difficult, depending on the region. That’s why Arvato Supply Chain Solutions in Louisville, Kentucky, is working with two local electric utilities, LG&E and East Kentucky Power Cooperative. Both companies offer a green power program that buys “green” energy to offset the electricity consumed on-site. “Because our distribution centres in Louisville are among the first in the U.S., we are especially proud that these sites are now purchasing green electricity to support the expansion of renewable energy in the region,” says Rachael Miller, Site Director for Arvato’s Louisville campus.

The Valencia, California, site, on the other hand, relies on the Clean Power Alliance. Clean Power Alliance is the locally operated not-for-profit electricity provider for 30 cities across Los Angeles County and Ventura County, as well as the unincorporated areas of both counties. Here, the traditional utility provides transmission and distribution of the electricity, while a third party purchases the green power on behalf of program participants. In 2020, 70 percent of the electricity provided came from solar power and 30 percent from wind power. “It’s very encouraging when businesses make the leadership decision to select 100 percent renewable energy as their preferred power option,” said Matthew Langer, Chief Operating Officer at Clean Power Alliance. “When companies like Arvato choose to use renewable energy in their operations, it can help spur demand for more renewables in the market and contribute to the renewable energy transition.”

This view is shared by Stephan Hackert, Vice President and Industry Lead Healthcare U.S. at Arvato: “All of our employees in the U.S. are very proud of this commitment – after all, we are successively sourcing more and more of our country-wide electricity needs from clean, renewable sources.” These kilowatt hours make an important contribution to the targeted climate neutrality. “Having already made a decisive contribution to achieving our climate protection targets with these measures, we will now look at the remaining emissions and consider which measures we can use to compensate for them,” adds Aydindag.

At the beginning of the year, Arvato’s newest location in Las Vegas was officially opened. Following the ambitious decision to become climate-neutral by 2030, Arvato placed a high value on sustainability while designing the warehouse. The logistics centre, for example, was designed with a reflecting roof that absorbs only a small amount of direct sunlight. It effectively prevents the building from overheating, lowering energy usage for air conditioning. The highly efficient LED lighting with connected occupancy sensors deployed throughout the building also contributes to energy savings. Furthermore, the warehouse has around 250 skylights that allow plenty of daylight into the building, thereby reducing the power consumption.

“Sustainability is a continuous improvement effort,” highlights Aydindag. Arvato Supply Chain Solutions has a total of 87 warehouses on five continents with more than 27 million square feet of storage space. In the US, the warehouse network includes a total of 10 locations in Ontario (CA), Valencia (CA), Las Vegas (NV), Pleasant Prairie (WI), Louisville (KY) and Memphis (TN), where comprehensive logistics services are provided to numerous customers in the consumer tech and healthcare industries.

Class A Modern Industrial Park in Poland

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.

Logistics Investors set to focus on ‘First Mile’

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

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

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

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.

Large Tyre Warehouse Opens in Poland

Bridgestone, a global leader in tyres and sustainable mobility solutions, present in Poznań since 1998, and ESA logistika have opened a 50,000 sq.m tyre warehouse where tyres will be shipped for further distribution.

What particularly distinguishes the complete warehousing processes that are implemented for Bridgestone is several sustainable solutions that allow obtaining BREEAM Excellent certification. One of them is a 50kWp photovoltaic installation and modern technologies in energy and water saving and reducing CO2 emissions. In the interests of the well-being of employees, green relaxation zones are also created around the hall.

Bridgestone is committed to achieving its major environmental goals; carbon neutrality and the use of 100% sustainable materials by 2050. – Our new project launched with ESA logistika reflects our commitment to create a supply – chain and logistics with long-term environmental benefits and aligns perfectly with the “Ecology” and “Energy” values in the Bridgestone E8 Commitment – says Elżbieta Oussar, Logistics and Supply Chain Director, Bridgestone Europe East Region. For 24 years Bridgestone systematically increased its footprint in the Wielkopolska region, where our largest factory in Europe is located. Along with increasing demand for our premium tyres and the extension of capacity in the Bridgestone Poznan plant, now comes the new warehouse that fulfills our requirements on the way for an optimized and sustainable supply chain.

The hall is also equipped with innovative systems and tools that automates and facilitates work. These includes a warehouse management system created by ESA logistika experts, belt conveyors for unloading and loading individual tyres and stacking them on racks, and at a later stage also robots for transporting tyres and racks for their storage. – Innovation is something that we use at ESA logistika every day. This time we are very lucky that the Bridgestone company is open to all new products and will allow us to act extensively in this area. We plan to automate even such a prosaic matter as keeping the floor clean – says Rafał Łuczak IT and Implementation Manager at ESA logistika.

Despite such a high level of automation, the launch of the warehouse near Poznań will create more jobs. In the beginning, nearly 50 people found employment there. These are mainly warehouse employees, but also logistics specialists and shift managers. – Entrusting such a large operation to ESA logistika is proof of the great trust that the client places in us. We are glad that our activities so far show that we are ready to implement new, increasingly larger projects – says Łukasz Dziewanowski Managing Director at ESA logistika.

According to Katarzyna Kujawiak, Development Director at Panattoni: Last year alone, we delivered about 200,000 sqm for the automotive industry. The valuable experience we’ve gained in recent years continues to pay off. One of the results is the state-of-the-art logistics center, where our client ESA logistika conducts operations for the global tire leader. Our competence in sustainable construction also proved important in the realization of the facility. To date, we have completed environmental certification in Poland for facilities totaling more than 6 million square meters.

The warehouse is equipped with modern security systems, especially fire protection. Developer divided the investment into two zones separated by the REI 240 wall. Thanks to the special structure of the external dockside zone, the safety of employees can be protected. Attention to detail is the hallmark of this project. The common goals shared by all involved from the outset allow us to confidently count on the full success of this cooperation.

About ESA logistika

ESA logistika is one of the leading international logistics operators, dynamically operating in the area of Central and Eastern Europe and establishing ever wider relations with partners from all over the world. It provides comprehensive, tailor-made solutions for industry in the field of transport, warehousing, distribution logistics, project logistics, outsourcing, or value-added services (VAS). It has experience in handling logistics processes both in terms of administration and implementation. It also offers consulting services.

About Bridgestone in Europe, the Middle East, India, and Africa

Bridgestone in Europe, the Middle East, India, and Africa (Bridgestone EMIA) is the regional Strategic Business Unit of Bridgestone Corporation, a global leader in tires and sustainable mobility solutions. Headquartered in Zaventem (Belgium), Bridgestone EMIA employs more than 20,000 people and conducts business in 40 countries across the region.
Bridgestone offers a diverse portfolio of premium tires, tire technologies, and advanced mobility solutions. The company’s vision is to provide social and customer value as a sustainable solutions company. The Bridgestone E8 Commitment is a broad, global corporate commitment that clearly defines the value the company is promising to deliver to society, our customers, and future generations in eight focus areas; Energy, Ecology, Efficiency, Extension, Economy, Emotion, Ease and Empowerment. These provide a compass to guide strategic priorities, decision-making, and actions throughout every area of the business.

Fulfilment technology is key to DTC success

Direct-to-Consumer (DTC) is a type of business-to-consumer retail sales strategy where a business will market, sell and ship a product directly to the customer, writes Will Lovatt, General Manager and Vice President, Deposco Europe. According to recent figures from eMarketer, US Direct-to-Consumer (DTC) ecommerce sales have more than tripled over the past six years. The market has grown from $36.08bn in 2016 to $128.33bn in 2021 – a gain approaching $100bn in about half a decade. We expect it will add almost another $100bn in the next three years, reaching $212.90bn by the end of 2024.

Unfortunately though, warehouse facilities in general are struggling to keep up with this trend. Their layout and processes are often unsuited to the emerging distribution model, populated as it often is, by racks of pallets and a wide range of automated materials handling equipment. The operation will typically be highly automated, focused on efficiency and moving inventory in bulk. Problems can therefore arise when a DTC capability is introduced and a consumer orders a single packet of biscuits, lipstick or pair of trainers,

Many warehouses are simply not ready or prepared to operate like this. If working practices and flows through the warehouse are configured for a retail business-to-business (B2B) approach, then looking after DTC can be a major challenge. It is not possible to pick a single item with a forklift truck, for example.

Many of these businesses have been set to run retail or wholesale B2B operations and while they may have these bulk operations under tight control, they might, at the same time, be forced into running a rudimentary ad hoc DTC operation in a corner of the facility or squeezed onto a mezzanine floor. It is far from the ideal set up for driving efficiencies.

Introduction of DTC workflows

Equally critically, the introduction of DTC workflows into the process mix within the warehouse makes it still more important that the business has the right inventory identified for each and every channel. Processes that were traditionally established predominantly for manufacturing efficiency must now be re-calibrated to handle DTC workflows.

Maintaining and segmenting inventory across different channels is tough to achieve, largely because each channel’s inventory needs to be considered separately. Legacy order fulfilment and ERP workflows are typically cumbersome and unwieldy to deal with, while the dynamic needs of ecommerce need rapid execution. When this mix of processes are handled manually, errors often creep in, and the accuracy of decision-making is therefore compromised. Moreover, these traditional processes typically only offer visibility at a case or pallet level, while today’s consumers needs are satisfied at a single-unit (EACH) level.

Orchestrating orders with a manual, user-driven, non-real-time process will not only result in inaccuracies, it will also run the risk of overselling – selling the same product simultaneously in two different channels – and increasing customer frustration. In line with this, a recent survey by Emplifi polling consumers across the UK and the US, found that 86% will leave a brand they were once loyal to after only two to three bad customer service experiences.

A route map forward

The most effective way for ecommerce companies to provide a great experience across the whole DTC cycle, especially one operating alongside other distribution and fulfilment processes, is by optimising warehouse operations. That effectively means selecting a Warehouse Management System (WMS) with the breadth and richness of functionality to fulfil the organisation’s current needs together with the flexibility to scale and grow as the business migrates into new areas.

In addition to this, retailers, wholesalers, 3PL service providers and ecommerce organisations alike, will all need to be sufficiently agile to fulfil through pick and pack processes with accuracy and speed, whatever the nature of the order. In contrast to the full vehicle transport optimisation mindset of the traditional supply chain, a system that directly integrates with parcel carriers and calculates dimensional weights, and rate shops from available carriers will offer additional service options to the customer while also saving time and money for the business itself.

Towards error-free fulfilment

Warehouse management and order fulfilment systems also need to support operational efficiency and enhanced productivity, of course. In this context, scanning technology with system directives and validation, across all warehouse processes creates a clear error-free fulfilment process for teams to work efficiently. Organisations can achieve further efficiency and productivity benefits by integrating in real-time to automation systems like fulfilment robotics, pick-to-light, and sortation systems. That, in turn, enables them to process higher volumes of orders, avoiding worker cost increases as the business develops.

Once again, having absolute network-wide inventory visibility is critically important here. Organisations require systems that allow them to manage all inventory processes inside their warehouse, from tracking and replenishment to cycle and physical counting. Moreover, to drive efficiencies across their modern warehouse and store operations, they need 100% visibility of where all inventory is located at all times across all locations.

In light of this, it is increasingly key that the business ensures it is running high-quality Warehouse Management and Order Management Systems that are flexible, scalable and capable of bringing in added functionality as and when needed, to address rapidly changing needs in the dynamic consumer-focused world they serve.

One-tenth of UK goods pass through Prologis portfolio

Prologis, a global leader in logistics real estate, in partnership with independent advisory firm Oxford Economics has released an updated study on the economic impact of its global operations. The “Future Flow of Goods” report highlights how the activities taking place inside logistics buildings owned and managed by Prologis in the UK are making a major contribution to the country’s economy.

According to the report:

  • The goods produced and sold that came through a Prologis building represent 2.8% of global GDP, up from 2.5% in 2020
  • £67bn ($78bn) of throughput flows through Prologis warehouses in the UK each year, the equivalent 2.5% of UK GDP and almost 10% of all household goods
  • Warehouses owned and managed by Prologis UK house an estimated 34,183 people in direct jobs – 5% up from 2020

The study’s economic impact model found that activities carried out by customers operating across the entire Prologis UK portfolio, which includes 22 Prologis Parks in the Midlands, South East and London, make a significant contribution to the national economy, with goods flowing through the buildings equivalent to approximately 9.8% of household consumption.

Paul Weston, Regional Head at Prologis UK, said: “It is increasingly clear to all that the logistics sector is playing an important role in driving economic growth – not just here in the UK, but around the world. This study confirms the contribution the sector is making and it’s positive to see that throughput at our warehouses in the UK has an estimated economic value equivalent to 2.5% of GDP, supporting UK PLC growth.”

Prologis: employment increases

“A crucial element of generating economic value is creating sustainable jobs – key to long-term prosperity,” continues Weston. “The Oxford Economics data shows that direct employment created by businesses at our Parks has increased since 2020 – another great outcome for the UK economy.

“The study is important to Prologis, because it demonstrates that the commitment we show in supporting our customers by investing in training and skills initiatives and ensuring there are enough workers in the sector, is making a difference.”

The study is the third to be conducted by Oxford Economics – the first was published in 2017 and followed up in 2020. The 2020 study provided UK-specific data for the first time.

Oxford Economics estimates the total employment impact of Prologis’ activities, with the study revealing that logistics property is having a positive employment impact in the UK specifically. The total number of people estimated to be in direct employment at Prologis-owned warehouses in the UK is 34,183, up from 32,500 in 2020 – an increase of 5%. Globally, in 2020, Oxford Economics estimated total direct employment of 853,700 workers in Prologis-owned warehouses. This figure has risen to 1,067,975 workers in 2022 – an increase of 25%.

Prologis’ estate in the UK covers more than 26 million sq ft. Many of its buildings are purpose-built to meet customers’ needs and are leased to household names such as Tesco, Sainsburys and Royal Mail. Among its key industrial property assets is the UK’s premier rail-connected logistics park at Daventry International Rail Freight Terminal (DIRFT).

CLICK HERE to visit Prologis’ Economic Impact Report to view and download the full report.

 

Hines acquires six Dutch logistics assets

Hines, the global real estate investment, development, and property manager, has advised its Hines European Core Fund (HECF) on the acquisition of six fully occupied logistics assets in the Randstad area in Aalsmeer, Honselersdijk and Rijnsburg in The Netherlands.

The business parks, on which the assets are located, are majority owned and managed by Royal FloraHolland (RFH), the world’s largest floricultural marketplace and a major contributor to The Netherlands’ world-renowned role within the flower industry. In 2021, the value of The Netherlands’ flower and plant import and export market reached €7.3bn, with a further €865m of flowers imported and distributed through business parks such as those operated by RFH.

The acquired buildings, spanning 92,000 sq m, are fully leased to six occupiers operating within The Netherlands’ floricultural trade market, each on a long-term lease. The properties are in the heart of the densely populated Randstad area, the economic heartland of The Netherlands, which accounts for a significant proportion of the country’s GDP and has a population of over 8.4m. The assets are clustered near the three major Dutch flower auction sites, giving occupiers excellent access to high concentrations of wholesale and retail flower vendors and purchasers.

Hines builds on investment

Andy Smith, managing director and country head – The Netherlands at Hines, commented: “The portfolio aggregation of these fully leased properties builds on our investment, development and management platform in Dutch logistics. The agricultural and floricultural logistics market is undergoing substantial consolidation, transformation and modernisation while remaining among the most resilient segments of a turbulent economy.

“We are proud to support our tenants in their continued success and we look forward to maintaining and improving the quality of these business critical assets through long term value creation via our property management initiatives.”

Simone Pozzato, managing director and HECF fund manager, added: “Our European core-fund,  HECF, completed the first phase of its aggregation of six fully occupied last-mile logistics assets in the highly sought-after Randstad area in The Netherlands, via four off-market and one direct market acquisitions, achieving a considerable portfolio size, at an attractive entry yield.

“Our ability to source and aggregate opportunities off market through our strong local teams has enabled us to decisively spot value and quickly close in prime occupier locations. To add further value on behalf of our investors, we will also seek to provide property management services and implement strategic ESG improvements aiming to reduce carbon emissions and increase efficiency.”

In 2022, Hines has completed €797m of logistics transactions across Europe, in markets including Czech Republic, France, Germany, Italy, Poland, The UK and The Netherlands. Hines’ European logistics AUM now stands at €3bn.

 

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