Sustainability report marks Prologis’ partnership with Planet Mark

Prologis UK, a leading owner and developer of logistics property, is celebrating a successful 15-year partnership with Planet Mark, a sustainability certification body serving organisations across industry sectors, which has seen the company significantly reduce its carbon impact.

In 2022, Prologis announced a goal, which will be submitted to the Science Based Targets Initiative for validation, to achieve net zero emissions by 2040. This is consistent with the company’s longstanding focus on ESG. Over the past 15 years, Prologis UK, with Planet Mark, has put sustainability firmly at the forefront of its development activities; embedding it into the design and construction process from start to finish.

An example of such initiatives is the work Planet Mark undertake with Prologis UK to engage the full construction supply chain, including all contractors, to ensure end-to-end visibility of carbon emissions, thereby identifying opportunities for reductions.

To mark the 15-year partnership, Prologis UK and Planet Mark have published a joint report about Prologis UK’s industry-leading approach ton reducing and mitigating carbon emissions, along with some facts and figures about its sustainability achievements.

A key finding of the report is that based on 74 projects, spanning more than 19 million sq ft of development over a 15-year time period, Prologis UK has achieved a reduction in carbon emissions of 476,819 tCO2e. This represents an average reduction in whole-life carbon emissions of 25%.

Simon Cox, Head of Development Management at Prologis UK, said: “This has been a ground-breaking programme, implemented at a time when the measurement, reduction and mitigation of carbon emissions was new to the real estate sector. Through our work with Planet Mark, we have gained invaluable experience and expertise, which will enable us to better serve our customers as we pursue of our newly published 2040 net zero goals.”

Steve Malkin, CEO Planet Mark, said: “Over the past 15 years our work with Prologis UK has put sustainability firmly at the forefront of their developments. By striving to reduce embodied carbon in every building, engaging with communities and their supply chain, and mitigating unavoidable emissions by protecting endangered rainforest, they have stretched way beyond compliance to set a new standard for best practice. We recognise that net zero is imperative and definitions are rapidly evolving alongside innovation, and we look forward to embracing this evolution together.”

The whole-life carbon emissions of each project are measured using a Lifecycle Carbon Assessment (LCA), which follows recognised standards (BS EN 15978:2011) and methodologies, including the Royal Institute of Chartered Surveyors’ Whole Life Carbon Method, 2017. As it is impossible to eliminate all embodied carbon emissions when constructing new buildings, Prologis UK and Planet Mark also created a bespoke carbon mitigation scheme.

While it was put in place several years earlier, the approach to carbon emissions reduction, elimination and mitigation employed by Prologis UK and Planet Mark aligns closely with the UK Green Building Council’s recently published framework definition for net-zero buildings.

Prologis UK’s innovative carbon mitigation scheme has proved particularly successful in mitigating unavoidable carbon emissions through investment in large-scale rainforest protection programmes to avoid deforestation and lock-in carbon. These activities have been implemented in partnership with the global climate change charity, Cool Earth. The report quantifies the positive impact this scheme has had over the past 15 years; mitigating total embodied carbon emissions of 879,158 tCO2e  through the protection of 17,683 acres of ‘at risk’ rainforest. This has prevented the loss of 4.1 million trees to deforestation, which would have resulted in potential emissions impact of 4.8 million tCO2e.

The whole-life carbon emissions of a typical distribution centre are typically 30% operational and 70% embodied. Operational emissions can be reduced through energy efficient design and onsite renewables. Although embodied carbon can be reduced through careful material selection and detailing it can never be entirely eliminated. The sustainability model put in place by Prologis UK and Planet Mark has been successful in mitigating – 100% of the unavoidable, embodied carbon emissions for all 74 projects assessed.

The report highlights the importance of stakeholder engagement and quantifies the social impact of the 74 projects surveyed. There is a community engagement programme in place for each of the projects assessed. This has included sustainability workshops through which  for 63 local primary schools and 68 schools and colleges have achieved Planet Mark certification.

CLICK HERE to view the report jointly produced by Prologis UK and Planet Mark.

Warehouse operators seek to optimise operations

A report written by VDC Research on behalf of terminal emulation leader StayLinked provides insight on evolving warehouse operations and operator optimisation priorities. Warehouse Operations 2022: Streamlining Technology Investment Time to Value and Overcoming New Technology Investment Challenges examines leading warehouse improvement initiatives. It also describes investment barriers to measuring the maturity of various technologies.

The data was gathered from 169 operations technology decision makers in North America, Europe and Asia. A survey focused on warehouse operations technology decision makers in retail, manufacturing, transportation/logistics, retail and wholesale organisations. VDC supplemented the survey-based research with in-depth interviews with leading warehouse technology investment decision makers and solution providers.

“The research was conducted to help warehouse organisations simplify and streamline testing and implement new solutions,” says StayLinked Chief Technology Officer Justin Griffith.

The timing of the research is important. Most warehouse operators, according to the VDC research, are facing significant increases in shipment volumes, number of SKUs managed, and overall inventory turns. Customer service requirements have increased as well. As a result, a greater percentage of products are picked by either the “each,” the “case,” or the “layer” in the modern warehouse.

“The respondents agree that optimising warehouse performance is critical,” Griffith says. “They are looking for new ways to improve on-time shipment and receipts.”

However, the results show many warehouses rely on manual paper-based processes. They also continue to bleed legacy assets that are not capable of addressing today’s needs. This has created an environment where many are supported by infrastructure that has not been updated for more than three years and formed a separation between warehouse operations leaders and laggards.

Another priority cited by business leaders is modernising infrastructures. Improving existing operations, they say, will give them greater agility to seamlessly test, evaluate and implement new technologies prior to making investment decisions.

The conclusions of the report reinforce the need for proven software platforms, including those supplied by StayLinked, to simplify deploying new and emerging technologies. These platforms also give operators ways to measure, monitor and deploy solutions without traditional rip-and-replace costs.

CLICK HERE to view the full report.

 

 

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.

 

New cross-dock terminal in heart of Europe

DB Schenker, one of the world’s leading global logistics service providers, has moved into a new, sustainable cross-dock terminal in the greater Ulm area at Herbrechtingen. DB Schenker serves numerous customers in the economic region, particularly from the food industry, the building materials industry and mechanical engineering. At the same time, Ulm is an important hub in DB Schenker’s high-performance European land transport network.

The new terminal, which is located in the direct vicinity of the A7 autobahn as an important north-south link and the A8 in the Stuttgart-Munich connection, went into operation at the end of June 2022. On a site area of 40,000 sq m, DB Schenker in Herbrechtingen now has 7,000 sq m of logistics space for transshipment and 74 truck ramps. On 23rd September, the successful move was celebrated with employees, customers and representatives of local politics at the premises.

“We have achieved a very good density of our land transport network with our current premises in Germany and Europe,” says Ralf Többe, Head of Land Transport at DB Schenker in the Germany/Switzerland cluster. “Through modernisations, branch expansions and new buildings like the one here in Herbrechtingen, we are increasing our capacity and performance within this network, positioning ourselves for further growth in Europe.”

Iris Steiner, Head of the Land office at the Herbrechtingen facility, adds: “By doubling the terminal area to 7,000 sq m, we have optimised our loading and unloading processes. This ensures particularly fast and punctual handling and at the same time creates better conditions for employees and, of course, our drivers. After just a few weeks of operation in the new terminal, we were able to achieve a significant increase in throughput. We are ideally prepared for upcoming new customer business.”

Sustainable performance

The relocation of the land transport office in Ulm to the new multifunctional cross-dock terminal in Herbrechtingen creates the best conditions for further growth. Great importance was attributed to sustainability in the construction of the new building. The new terminal is DGNB Gold certified. The photovoltaic installation is currently being planned. Several e-charging stations are available for e-transporters as well as for employees’ vehicles.

Socially sustainable is above all the design of the infrastructure for employees. With 2,000 sq m of office and social space as well as around 15,200 sq m of paved outdoor areas and generous social rooms, the facility is also an inviting and comfortable base for drivers. The premises employs 100 people.

Save energy and money with thermal clothing

Insulating the body, as opposed to a warehouse, is much more energy efficient. Our own bodies create heat, so wearing a thermal base layer, hat or lightweight jacket will help to regulate the body temperature when the external temperature is low, providing you with a simple and effective way to combat the energy crisis this winter.

FlexiTog, a leading global freezer workwear brand, has been in this market for over 43 years. Trusted by cold store companies all over world, with years of development in providing thermal clothing to people working at temperatures down to -40°C, it describes itself as the go-to company for your thermal workwear needs.

Based on an average UK warehouse size of 340,000 sq ft, it has been proven that by simply turning down the heating by 1°C you can save up to 10% of your heating costs. However, by adding a thermal base layer to your clothing, you can save up to 40% of your energy costs. FlexiTog already supplies the largest distribution companies across the UK for this exact reason. Amongst a vast range of thermal clothing solutions, FlexiTog has a combination of energy-saving kits, that include thermal base layers, hats and gloves that are readily available and can be purchased online for next-working-day delivery.

By investing some of the money saved into your staff who are working in cold temperatures this winter, you will be keeping them warm and comfortable, which in turn will increase productivity, efficiency, and create a constructive culture.

 

 

Prologis announces three major UK speculative developments

Following a recent flurry of acquisitions within the UK, Prologis, a leading owner and developer of logistics real estate, has announced three strategic developments across the Midlands and the South East. The projects at Prologis Park Midpoint, located in Birmingham, Prologis Park West London and Prologis Park Brooklands in Weybridge , bringing the total amount of land under development by Prologis UK for the logistics industry to 2.4 million sq ft.

Ground has been broken at Prologis Park Midpoint, one of the UK’s most successful logistics parks, with the new unit, DC6, under construction as part of a speculative development project. On completion, the new 163,754 sq ft distribution centre will bring the total floorspace of logistics properties at the park to over 1.6 million sq ft.

Prologis Park Midpoint is situated in the logistics “Golden Triangle” in the Midlands – a prime location to support growing supply chain needs. The park is situated just eight miles from central Birmingham and has access to 11 motorway junctions within five miles, providing vital accessibility for national and urban distribution.

As demands within the ecommerce sector continue to grow, there has been an increased focus on the need for more high-density urban hubs to provide greater last-mile capabilities. In response to the growing needs of the industry, Prologis has broken ground on two key development areas within Greater London.

Strategically positioned to ensure access the major consumer markets within West and Central London, and Thames Valley, Prologis Park West London is located on the doorstep of Heathrow Airport and within four miles of the M25. The two new units, DC5 (195,719 sq ft) and DC6 (143,849 sq ft), are due to finish construction in Spring 2023.

Likewise, Prologis Park Brooklands DC1 is situated in a proven last-mile delivery location, serving Central and South London, with easy access to the M25, M3 and A3. The new 124,401 sq ft logistics facility draws upon a large and skilled labour pool from Weybridge and surrounding areas.

Both Prologis Park West London and Prologis Park Brooklands are designed and built to meet the demands of high-performance operations.

As well as being Grade A logistics and manufacturing facilities, all three developments will be certified net zero carbon in construction, with the new facilities targeted to achieve BREEAM-rated ‘Excellent’, a mark of Prologis’ ongoing environmental credentials. In addition, the units will be kitted out with EV infrastructure for the benefit of customers with green fleets.

Paul Weston, Regional Head at Prologis UK, said: “Our development projects benefit from the excellent support of local councils and other stakeholders right from the start. Not only do these speculative developments show the strength and confidence we have in the sector, but also the exemplify the innovative ways in which the industry can support its ongoing growth. We’ve listened to the market, and to our customers, and are actively pushing forward development plans to support areas of growth, such as last-mile and urban delivery.

“We’re immensely proud of the development projects that are ongoing across the country, and these new units are expected to generate a high level of interest and bring an array of benefits for the local economy and communities.”

 

Remaining units taken at Madrid logistics park

Delin Property, the fully integrated European logistics warehouse specialist, has leased to Maersk Logistics & Services the two remaining units at Alcalá East Madrid Park, its greenfield development in the established Alcalá de Henares distribution hub serving the Spanish capital.

The subsidiary of A.P.Moeller – Maersk, one of the world’s largest shipping groups, has agreed to lease a total of 21,000 sq m in the second building of the park developed by Delin Property following its purchase of the site in late 2018. Alcalá de Henares is 40km from central Madrid and Delin Property’s park enjoys excellent connectivity through two accesses onto the A2 motorway to Zaragoza and Barcelona, in North East Spain.

Alcalá East Madrid Park comprises two warehouses, which have been divided into smaller units to provide a total of 45,700 sq m of leasable space. The occupiers of the park’s other units include third-party logistics provider arvato-Bertelsmann and Conforama, the home furnishings retail chain. Each building provides 12.2m of free storage height, office space and are certified as “very good” by BREEAM.

The project is part of Delin Property’s investment strategy in Spain, which to date has involved developments in prime logistics locations in Greater Madrid. Its other investment in Spain is in the South Madrid Logistics Park project in Ilescas, where it is scheduled to deliver the second of three buildings in early 2023.

Rob Reiskin, CEO of Delin Property, said: “Completing the lease-up of this development is a major milestone for our development strategy in Spain, where we’ve had a team on the ground since 2018. We like the fundamentals of the Spanish market and are actively looking for opportunities to broaden the portfolio by acquiring well-located, income-producing assets. The new pricing environment in which we find ourselves will certainly help in this regard.”

 

Kite Packaging extends Coventry campus

Adding almost 190,000 sq ft, Kite Packaging’s Coventry capacity now stands at 380,000 sq ft, offering a considerably larger inventory to clients. With space for c.40,000 pallets, Kite says great stock availability is guaranteed. An additional 30,000 sq ft of space in Unit 2 awaits expansion as the company continues to grow, with plans to increase Coventry personnel to 170 people.

Significant investment went into furnishing the new site, with Kite supporting the local economy by hiring Midlands-based contractors where possible. The units feature new IT infrastructure and energy-efficient machinery, with 18 new forklifts, 14 low-level order pickers, and a conveyor system to streamline warehouse processes. With no shortage for space, Kite’s mobile packaging laboratory has its very own parking place when it is not out on visits.

Complete with a meeting room suite, exceptional canteen and breakout space, the campus also boasts a dedicated educational facility which Kite describes as “like no other in our industry”, providing on-site training for employees and customers as well as a great work environment. Surrounding wildlife has been preserved and landscaped with walkway access, benefitting the employees without disturbing the natural environment.

The move saw more green initiatives accommodated, enabling Kite to refine its existing sustainable operations in its new home. While modern insulation and smart lighting are employed for energy efficiency, the site has also been fitted with solar panels to source renewable power. A campus-wide recycling initiative has been implemented, along with Kite having its very own on-site water recycling plant for self-sufficiency. To add, electric vehicle charging points have been installed across the premises with the opportunity to add more if the need arises.

Garbe converts military training ground to logistics

Garbe Industrial Real Estate GmbH has secured a conversion area of around 76,000 sq m in Thuringia. The site is the final large plot in the Eisenach Kindel industrial estate in the municipality of Hörselberg-Hainich (Wartburgkreis). A new production and logistics property is to be constructed there for the tenant BCUBE Logistik GmbH by September 2023. Garbe Industrial Real Estate is investing around €40m in the project.

“The area we acquired from the Free State of Thuringia is part of a former military training ground,” explains Adrian Zellner, Member of the Executive Board at Garbe Industrial Real Estate. “During the revitalisation, one focus is therefore on the detection and professional removal of possible combat ordnance and ammunition remnants, as well as on compensating for the enormous height difference. Thanks to our many years of expertise, we are currently on schedule with the conversion of the former brownfield site and want to start construction of the new property before the end of September.”

A state-of-the-art production and logistics property with a total area of around 35,000 sq m is to be built there. BCUBE Logistik GmbH has already been confirmed as the tenant. The company is part of the BCUBE Group, one of the leading international companies for integrated logistics services, employing around 6,700 people worldwide and serving customers in the automotive, aviation and plant engineering sectors.

“With the new hall, we are significantly expanding our previous capacities in Eisenach and creating around 80 jobs at this new location”, says Frank Schöppach, Managing Director of BCUBE Logistik GmbH. “Customised contract logistics operations for a well-known automotive supplier will be handled there in the future. In addition to production supply, packing kit creation, the pre-assembly of components and quality inspection, this will also include the industrial cleaning of standard and specialised load carriers.”

For this purpose, the production and logistics property will be pre-equipped for the installation of two wet and two dry cleaning systems and sealed in accordance with the protective measures for water-polluting substances under the Water Resources Act (WHG). To enable efficient loading and unloading, 30 ramp gates with dock levellers and five ground-level sectional gates are envisaged – as well as parking spaces for 102 cars and nine trucks on the outdoor area.

In addition, the site impresses with its central position in the middle of Germany. The industrial estate is only about 10km from the city of Eisenach and is located directly on the B 84. After only 3km, the Eisenach-Ost junction to the A 4 Bad Hersfeld–Dresden road can be reached without having to drive through built-up areas. This means that BCUBE Logistik GmbH will benefit from short distances between their locations and excellent connections to the motorway network.

Garbe Industrial Real Estate is attaching great importance to sustainability in the construction of the property. “We generally develop our projects according to current ecological standards and ESG criteria. This is part of our corporate strategy,” emphasises Adrian Zellner. As a result, the new building in Hörselberg-Hainich is being constructed according to the specifications of the efficiency building class 55 of the Kreditanstalt für Wiederaufbau/Reconstruction Loan Corporation (KfW).

A photovoltaic system covering the entire roof area of the production and logistics hall is planned to produce regenerative energy. Garbe Industrial Real Estate is aiming for certification according to the Gold Standard of the German Sustainable Building Council (DGNB) for this new property.

Prologis makes €1.5bn European acquisition

Prologis, Inc., a global leader in logistics real estate, has acquired a diverse portfolio of 128 logistics facilities and six new developments from leading last-mile operator Crossbay, adding a total of 1.14 million square metres of urban space to its European portfolio. The €1.585bn transaction, on behalf of Prologis European Logistics Fund (PELF), is in line with the fund’s investment strategy of increasing its urban infill real estate portfolio, which will be approximately 54% post-acquisition.

“This acquisition underscores our ongoing ability to provide our customers with quality urban logistics locations and opportunities beyond the real estate near highly populated areas that serve their growth needs,” says Ben Bannatyne, President, Prologis Europe. “With the ongoing growth of ecommerce, locations near dense population centres are becoming increasing important to our customers.”

Key Infill Locations

These properties – located in the key European markets and population centres – will allow Prologis to support their customers’ needs. The acquired properties are in:

  • Italy (Rome and Milan)
  • Netherlands (Amsterdam and Rotterdam)
  • Spain (Madrid and Barcelona)
  • Germany (Nuremberg and Berlin)
  • France (Paris)
  • Belgium (Brussels)
  • Poland (Lodz)

Close to major city centres, about 85% of these new properties can service areas with a population of more than one million in approximately 30 minutes. The facilities are 95% occupied and expands Prologis’ customer base with more than 100 new customers.

“To have achieved the sale at the values agreed, despite the increasingly challenging macro-economic circumstances, is a reflection of the portfolio’s quality and enables us to crystallise strong returns for our investors,” says Marcus Meijer, CEO of MARK, the €10bn pan-European investment manager behind Crossbay.

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