Stoford gets North West’s biggest warehouse scheme underway : Work is progressing on construction of a new 667,000 sq ft UK parts distribution centre at Ellesmere Port. Leading commercial property developer, Stoford is delivering the new state-of-the-art logistics development on a 38.7 acre site at West Road, Hooton Park Airfield.
New £20M 113,000 sq ft robot led HQ/Warehouse Facility under construction for fast-growing pharmacy chain Peak Pharmacy at new Horizon 29 development. St Francis Group, a leading UK-based property development and investment group and an expert in brownfield development and regeneration and its joint venture partner ALMCOR has announced that
IKEA is officially moving to Dartford after it was revealed they are behind a deal to secure a 450,000 sq ft ‘powerhouse’, but the unit will sadly not be a customer-facing store. The Swedish giants have confirmed they have signed a 15-year lease with developers on a pre-let agreement for
GLP, a leading investor and developer of logistics buildings and warehouses, has today announced plans to speculatively develop a further 2.3M sq ft of logistics warehousing space at strategic sites across the UK. The sites include: Mammoth 602 –a 602,000 sq ft logistics/warehouse unit at G-Park Doncaster situated directly off
Network Space Investments Limited has completed the off-market purchase of a modern single let industrial building on Hellaby Business Park, Rotherham, for £2.45million. The building, Unit 6, is situated in the heart of the Hellaby industrial estate, immediately adjacent to J1 of the M18 and within easy access of the
Citrus Durham has strengthened the agency team at Integra 61, the North East’s largest new logistics and manufacturing park, with the appointment of Colliers International to join existing agent Avison Young. The agency team will jointly market the remaining 1m sq ft of industrial/logistics space and circa 80,000 sq ft
Located on one of the most prominent and advantageous sites on the Southern M1, Panattoni Park Luton offers 414,000 sq. ft of prime logistics and manufacturing warehousing space. As the UK’s largest speculative developer, Panattoni continues to drive forward its commitment to producing smarter, faster developments that have the smallest
GLP, investor and developer of logistics warehouses and distribution parks, today announces that it has delivered the first net zero carbon development to be officially verified as Net Zero carbon for construction in line with the UKGBC Net Zero Carbon Buildings Framework Definition. The development, known as Magnitude 313, was
Purfleet 338 Will Include 29,000 Sq Ft of Offices Green light granted for one of the largest warehouses available within the M25, meeting demand for quality logistics space close to the Capital Customers to benefit from access to a skilled workforce, including 1.6 million qualified locals1 Planning has been granted
The logistics sector across the Northern Powerhouse region has the potential to achieve transformational growth and create an additional 174,000 jobs by 2050 if key barriers are addressed, according to research by logistics developer Tritax Symmetry and planning and development consultancy Turley. Areas identified as needing ‘substantial improvement’ to achieve
BDC 319 : Aug 2024
Stoford gets North West’s biggest warehouse scheme underway : Work is progressing on construction of a new 667,000 sq ft UK parts distribution centre at Ellesmere Port. Leading commercial property developer, Stoford is delivering the new state-of-the-art logistics development on a 38.7 acre site at West Road, Hooton Park Airfield. The building has been pre-let to Peugeot, a subsidiary of the global automaker Stellantis Group and is the biggest single cross-docked warehouse to be developed in the North West this year. Stoford is targeting the highest level of building sustainability certification for the new development, including BREEAM ‘Outstanding’ and an EPC ‘A’ rating. It will be certified as net zero carbon in operation for the base build works. The building will provide office accommodation and features including photovoltaic roof panels, rainwater harvesting, LED lighting and an energy monitoring system. Staff will also benefit from an external wellbeing area, bicycle storage and EV car charging points. Stoford has sympathetically designed the building to preserve the integrity of the existing listed structures on the former airfield, which will see the ground and building floor levels of the new facility recessed into the existing slope. Winvic Construction Ltd has been appointed as contractor to deliver the works. It is anticipated that the building’s steel frame will be in place by the end of 2022, with the development programmed for completion in the second half of 2023. Singapore Exchange listed Frasers Logistics & Commercial Trust (FLCT) is forward funding the new development and has acquired the freehold for a total consideration on a completed basis of £101 million. Jamie Craig, UK Director for Parts Distribution at Stellantis, said: “The incredible progress on the site is a credit to Stoford and Winvic. The sheer scale of the development is impressive in every way. I am looking forward to the day when we can move our UK parts distribution centre into the building.” Dan Gallagher, Joint Managing Director of Stoford said: “This is a modern, purpose-built distribution building that will create new jobs and deliver significant economic benefits. Sustainability has been a key factor throughout the design process, with consideration given to minimising embodied carbon and reducing the building’s energy consumption. The development forms part of the expansion of Ellesmere Port and will ensure the longevity of Hooton Park as a significant employment site.” Robert Wallace, Chief Executive Officer of the REIT Manager, said: “The forward funding acquisition presents an excellent opportunity to add a state-of-the-art logistics facility to FLCT’s growing UK logistics and industrial portfolio. With a committed 15-year lease term to Peugeot, a subsidiary of the global automaker Stellantis Group, the property will serve as its national distribution centre upon completion. The property will be developed to high building and sustainability specifications and will meet BREEAM5 ‘Outstanding’ and EPC6 A rating. “The property will mark FLCT’s fourth logistics and industrial investment in the UK and is strategically sited in a well-established logistics and industrial precinct in UK’s North West, which will enable us to deepen FLCT’s presence in the attractive UK logistics real estate space, while supporting our objectives of delivering sustainable long-term value to our unitholders.” Winvic’s Head of Industrial, Distribution and Logistics, Danny Nelson, added: “We’re thrilled to be working with Stoford once again and to add another low carbon industrial facility to our roster of live projects. The relationships already built with the Stellantis team are driving the facility forward and we look forward to exceeding their expectations all the way to delivery in the second half of 2023.” Gemma Davies, Director of Economy and Housing at Cheshire West and Chester Council, said: “This is another significant investment in Ellesmere Port, not only does the new building contribute to the green credentials we are striving for, it continues the historic association Ellesmere Port has with the motor industry and creates a new modern workplace.” Building, Design & Construction Magazine | The Choice of Industry Professionals
New £20M 113,000 sq ft robot led HQ/Warehouse Facility under construction for fast-growing pharmacy chain Peak Pharmacy at new Horizon 29 development. St Francis Group, a leading UK-based property development and investment group and an expert in brownfield development and regeneration and its joint venture partner ALMCOR has announced that it has officially broken ground on a new 113,000 sq ft robot led HQ/warehouse for fast growing Chesterfield based Pharmacy Chain Peak Pharmacy at its much sought after Horizon 29 industrial development site at Bolsover, North Derbyshire. Works on the £20M ultra-modern headquarters and facility commenced at the start of June and are accelerating rapidly. The new facility will use state of the art robotics and automated systems to support staff handling over 400,000 medicines and other prescribed items every month, equating to 20,000 a day, more than 40 every minute. The new Pharmacy Service Centre will handle prescriptions and dispatch medicines for the firm’s 150 community pharmacies across England. Prescriptions will be assembled for individual patients, then either delivered to local pharmacies for collection the next day, or direct to patients’ homes. The new hub is expected to take 9 months to build and due to open in April next year. It will house up to 100 staff, with the potential to grow into a 24-hour operation in future. MCS Construction has been appointed as the main building contractor. St Francis Group also acknowledges the support of the Northeast Derbyshire District Council, Bolsover District Council, Derbyshire County Council and the D2N2 LEP in bringing this development forward. Speaking about the start on site Gareth Williams, Development Director at St Francis Group, said: “We are absolutely delighted to have formally marked the start of works onsite and to be building this fantastic new facility for fast-growing customer Peak Pharmacy with the team onsite already having made significant progress. This new facility serves as the first unit to be built at Horizon 29, welcoming our first occupier. Since we commenced the extensive remediation of the site interest in the scheme has been extensive and the recent sale by the JV of 80 acres of land to BentallGreenOak for the speculative development of 1.2 million sq ft of warehouse and logistics space speaks to that. We look forward to working with the team at Peak Pharmacy and delivering a first-class facility next year.” Also in comment Joe Cattee, the Managing Director of Peak Pharmacy, said: “These are ambitious plans for our company, staff and customers – in the face of a rapidly changing pharmacy landscape. This new facility will be truly transformational for us. We’re investing now to future-proof our business, so that we can continue to provide great local customer service which means so much to us. We are very pleased to be working with St Francis and ALMCOR and the full project team and look forward to seeing the development rise out of the ground as it happens.” For further information on the development visit: www.horizon29.com
IKEA is officially moving to Dartford after it was revealed they are behind a deal to secure a 450,000 sq ft ‘powerhouse’, but the unit will sadly not be a customer-facing store. The Swedish giants have confirmed they have signed a 15-year lease with developers on a pre-let agreement for the massive warehouse, located at the former Littlebrook Power Station site on the south bank of the River Thames. They will be joining Amazon at the site after they recently moved into a 2.3 million sq ft ‘Mega Box’ distribution centre right next door, with the entire park undergoing fierce redevelopment to become a “critical last journey location inside the M25.” However, IKEA will not be opening a new store for customers as part of the plans, instead developing a massive new distribution centre which will “meet our customers wherever and whenever they need us.” The distribution centre in Dartford is set to serve IKEA’s stores across the UK and south east – including Greenwich, Croydon and Lakeside. A spokesperson for IKEA said they were “delighted to confirm” they would be moving into a unit at The Power House project in Dartford. “This exciting investment forms part of our ongoing transformation to become even more affordable, accessible and sustainable, accelerating our omnichannel approach to meet our customers wherever and whenever they need us, irrespective of where they live or whether they visit us in-store or online.” The ‘450@thepowerhouse’ unit is currently under construction, and it is not yet know when the site will be opening or how many jobs will be created. Adjacent to the IKEA site, Amazon have just moved into their own distribution centre at the old Littlebrook power station site, a vast £200 million build on a 45-acre plot of land. The move is part of an expansion for the retail titans, with around 1,3000 new jobs created locally in a welcome boost for the area. Workers are even being offered a £1,000 starting bonus amid worker struggles. With IKEA and Amazon m the former Littlebrook power station next to the Dartford-Thurrock River Crossing, The impressive unit in Dartford has been pre-let to IKEA by Bericote and Titrax Big Box who are leading the major regeneration of the area located adjacent to the QE2 Bridge and Dartford Tunnel on the south bank of the Thames. Titrax Big Box say the location will mean it’s project, a “rare asset so close to the heart of London,” will benefit from “exceptional transport connectivity via motorway, rail and water, excellent infrastructure, significant power provision and a robust labour market.” Jonathan Maher, development director at Bericote, said: “This letting underpins Bericote’s ongoing commitment to creating highly specified, modern and adaptable industrial and logistics solutions in strategic locations across the UK. “The pre-letting during construction of this speculative development underlines the strength of the market and the very attractive attributes of the site and we look forward to repeating the same success for the next phase of the development.” Charlie Withers, director of development for Tritax Management, added: “Securing a 15-year letting at thepowerhouse to another high quality occupier, further validates our strategic focus on development. “The new tenant, will join Amazon at what is becoming the preeminent logistics location in the UK’s South East.” Plans were submitted in June for the third phase of the project, and developers of the park also say they have allocated 30% of the overall Littlebrook site for permanent open space and habitat creation for wildlife. IKEA added: “As we continue to step up our sustainability commitments, guided by our established strategy to become People & Planet Positive by 2030, we were also attracted by the site’s significant biodiversity enhancement and habitat creation plans, which have informed the UK Green Building Council’s Nature Based Solutions best practice guidance for the industry.”
GLP, a leading investor and developer of logistics buildings and warehouses, has today announced plans to speculatively develop a further 2.3M sq ft of logistics warehousing space at strategic sites across the UK. The sites include: Mammoth 602 –a 602,000 sq ft logistics/warehouse unit at G-Park Doncaster situated directly off junction 4 of the M18. 1m sq ft across 3 units of 200,000, 297,000 and 503,000 sq ft at Magna Park North, Lutterworth. 2 units of 117,000 and 140,000 sq ft at the new G-Park Milton Keynes development situated just one mile from junction 14 of the M1. 3 units of 26,000, 48,000 and 89,000 sq ft at the new G-Hub Crawley development strategically located for last mile logistics solutions. A 257,000 sq ft warehouse at G-Park Skelmersdale offering excellent access to M58 and M6 motorway. The units will each benefit from GLP’s best-in-class specification including wide service yards, significant HGV and car parking allocations, together with dock levelers, level access doors, increased natural light, electric vehicle charging and abundant power supply. Each development will be BREEAM Excellent, designed to WELL principles and feature a range of sustainability and energy efficiency measures that are designed to continuously improve GLP’s environmental aspirations. Bruce Topley, Managing Director, UK, GLP, said: “We are seeing continued strong customer demand for Grade A sustainable warehouse space in our market. This is primarily driven by the ongoing growth of ecommerce coupled with the need for supply chains to be improved further and significant supply constraints. These new developments are a response to that exceptional demand. “We are committed to investing in our portfolio and offering our customers as much choice and flexibility as possible to respond to their growth needs. We are also firmly focused on delivering buildings with less embodied carbon than industry standard and which reduce operational carbon emissions.”
Network Space Investments Limited has completed the off-market purchase of a modern single let industrial building on Hellaby Business Park, Rotherham, for £2.45million. The building, Unit 6, is situated in the heart of the Hellaby industrial estate, immediately adjacent to J1 of the M18 and within easy access of the M1, Doncaster and Sheffield. The building extends to approximately 40,000 sq. ft and is currently occupied by a FTSE 100 listed long-term tenant. Martin Mellor, Managing Director of Network Space Investments Limited commented: “We are delighted to have acquired this building to add to our growing investment portfolio. “The property is both well located within the South Yorkshire conurbation and has been excellently maintained by the current tenant who has been in situ for eight years. The acquisition precisely matches our investment criteria to acquire good quality modern buildings in urban areas where there is significant future value growth potential.” Network Space Investments has appointed Doncaster-based NSM property and asset management specialists to manage the property. Network Space Investments was represented by CPP.
Citrus Durham has strengthened the agency team at Integra 61, the North East’s largest new logistics and manufacturing park, with the appointment of Colliers International to join existing agent Avison Young. The agency team will jointly market the remaining 1m sq ft of industrial/logistics space and circa 80,000 sq ft of roadside opportunities at the 205 acre site located next to J61 of the A1(M). Following the recent completion of over £20m of major infrastructure works, the £300m mixed-use employment development is now fully operational and has the capability to deliver some 4,000 jobs in total. In addition to being home to Amazon’s new 2m sq ft Fulfilment Centre, one of the UK’s largest logistics buildings, the site has outline planning consent for a further 1m sq ft of employment space with ‘oven-ready’ plots available on a design and build basis which enable occupiers to be operational within a year of deal completion. The pioneering development will also house circa 300 new homes and significant roadside opportunities including drive-thru’s, a 70-bed hotel, family pub/restaurant, nursery, car showrooms and trade counter/retail units. Fronting onto the newly upgraded A688 and Durham Services, Integra 61 is just 4 miles away from the world-renowned University City of Durham with its population of over 40,000. This, in addition to the 740,000 people living within 30 minutes of the scheme offers occupiers access to an excellent local labour pool. Robert Whatmuff, Director, Colliers International said; “Integra 61 is undoubtedly one of the most exciting developments in the North East, with commercial opportunities to suit a full range of businesses and requirements. Certainty of deliverability is crucial in today’s market and the fact that occupiers can be operational on-site within a year of committing to the scheme is fantastic and will ensure smooth transitions for businesses.” Robert Rae, MD, Avison Young commented; “There has been real momentum at Integra 61 with the site now a hub of activity. Potential occupiers can get a sense of what a significant development the Citrus Durham team has created here and we anticipate high levels of demand for the wide range of opportunities at this strategic site.” David Cullingford, Project Lead for Integra 61 and Citrus Durham, said; “We are delighted to welcome Colliers International to our agency team at Integra 61. Their national outreach and expertise within the roadside sector is second to none and combined with Avison Young’s long-standing involvement with the development, we have a great team to take Integra 61 into its next exciting phase.”
Located on one of the most prominent and advantageous sites on the Southern M1, Panattoni Park Luton offers 414,000 sq. ft of prime logistics and manufacturing warehousing space. As the UK’s largest speculative developer, Panattoni continues to drive forward its commitment to producing smarter, faster developments that have the smallest carbon footprint possible, with Panattoni Park Luton being one of its most recent examples. The state-of-the-art development comprises of two separate units, with Hörmann UK supplying a total of 44 Loading Bays, including both Standard and Double Deck Docks, to provide potential occupiers with flexible loading solutions that will continue to meet their future needs. 10 of Hörmann UK’s Level Access Doors, 20 Fire Exit Doors and a range of additional safety devices have also been installed across the two warehouses. The innovations were specified by Panattoni to ensure it provides the highest standards in efficiency and functionality for a diverse range of supply chain operators. The development’s prime location poses an attractive proposition for potential occupiers, with London only 36 miles away and Luton Airport just a seven mile drive. UK major ports, including Felixstowe, London Gateway, Southampton and Dover, are also within easy HGV drive times, while a proposal for a new link road from junction 11a of the M1 to the A6 has also been approved. Unit 1, Luton 346, is available for immediate occupation and spans 346,000 sq. ft of warehousing space, featuring a clear internal height of 15 metres and 12,839 sq. ft of office area located over two floors. Chosen by Panattoni to provide potential occupiers with a premium offering, 38 of Hörmann UK’s Standard and Double Deck Loading Bays are installed throughout the warehouse, with each of the 34 Standard Loading Bays featuring a 3500mm long Dock Leveller with a 1000mm telescopic lip. This innovative design provides a safe working range above and below dock for maximum operational efficiency, while the tail lift slot covers prevent debris from collecting underneath, for enhanced service life. The bays have also been installed with Hörmann UK’s DTS collapsible Frame Shelter and Vertica Lift Sectional Doors, which are constructed using a unique thermal frame system that provides enhanced U-value ratings and increased operational efficiency. The four Double Deck Loading Bays also feature a 4500mm DTS-G Dock Shelter to facilitate the loading and unloading process for a diverse fleet of vehicles. This enables occupiers to transport goods in and out of the warehouse using larger double deck trucks, as well as standard sized heavy goods vehicles for optimum operational efficiency. For improved thermal performance, the Double Deck Docks are fitted with secondary electric roller blind top flaps to provide an efficient seal on smaller vehicles when using the bay. Eight of Hörmann UK’s vertical lift Level Access Doors have also been installed throughout Unit 1, along with 13 of its heavy duty Fire Exit Doors. The combination of these industrial solutions are designed to provide the highest levels of safety, efficiency and security throughout the entire unit. Fergie Taylor, Head of Development Delivery at Panattoni, said: “Since October 2017, Panattoni has committed to more than 8.5 million sq. ft of new projects within the UK, with a development value of £1 billion. The recent completion of Panattoni Park Luton fulfils our ambitions in delivering only the very best in warehousing solutions at key locations across the UK. “Our latest contract with Hörmann UK, which will continue its supply of products to key Panattoni developments throughout 2020 and 2021, will further drive our dedication to delivering the highest standards in quality and innovation for logistics solutions.” The second unit, Luton 69, spans 69,000 sq. ft and has already been occupied by a leading electrical supplier. Four of Hörmann UK’s Standard Dock Bays and two Double Deck Dock Bays are installed throughout the site, along with seven Fire Exit Doors and two Level Access Doors. Across both units, Hörmann UK’s resilient LED Vehicle Loading Lights have also been installed on each bay, along with rayon reinforced recycled tyre rubber dock buffers with wrap around 15mm steel face plates. This ensures all of the 44 loading bays offer the highest standards in safety, whilst subsequently streamlining the loading and unloading process for operators. Phil Thorpe, Industrial Division Manager at Hörmann UK, said: “As the largest developer of logistics facilities in Europe, Panattoni sets the pace within the industry for delivering first class warehousing solutions. We are extremely proud to be one of its leading suppliers of loading solutions, providing our durable and reliable technologies for a range of its high profile sites across the UK, including the recently completed Panattoni Park Luton.” To view Hörmann UK’s complete offering for the industrial market, visit https://www.hormann.co.uk or call 01530 516868.
GLP, investor and developer of logistics warehouses and distribution parks, today announces that it has delivered the first net zero carbon development to be officially verified as Net Zero carbon for construction in line with the UKGBC Net Zero Carbon Buildings Framework Definition. The development, known as Magnitude 313, was developed at GLP’s flagship logistics park Magna Park Milton Keynes. It is GLP’s 6th building to go through the Planet Mark accreditation scheme and part of its strategy to reduce the carbon footprint further. Whilst GLP’s building specifications are continually reviewed, the project team conducted a deeper assessment on Magnitude in order to maximise the efficiency and sustainability credentials of the materials, resulting in significantly lower levels of embodied carbon. Key manufacturers were asked to provide a complete breakdown of their products along with their origin, embodied carbon and whether the product can be reused or recycled. Chetwoods Thrive and Circular Ecology, along with other leaders in the field were engaged to help the design team and wider supply chain collaborate and reduce as much embodied carbon as possible. Magnitude has been used as a vehicle for innovation, using embodied carbon reduction as a key driver for finding techno-economically feasible solutions. Where possible the outcomes have been incorporated in Magnitude. GLP can attest to the fact that they have reduced the embodied carbon as much as possible at this time. Further solutions will be carried forward to improve future buildings, providing a longer-term legacy. Steven Alexander, UK Construction Director at GLP Europe, said: “Magnitude is a milestone development for GLP and the logistics industry. It paves the way for further net zero carbon development as we continue our strategy of reducing our carbon footprint, keeping sustainability at the forefront of both the design and construction processes. We are proud to have developed the world’s first building to be verified as net zero carbon for construction and look forward to continuing our sustainability journey.” Nick Cook, President, GLP Europe, said: “This is a landmark development for GLP and we hope that it will set a new standard for sustainability in the sector. The team is constantly striving to find innovative ways to improve the carbon footprint of our buildings and ensure that GLP is considered synonymous with sustainable development.” Julie Hirigoyen, Chief Executive at UKGBC, said: “The urgency of the climate crisis means it is vital that we address all carbon impacts from buildings including the upfront embodied carbon from products, materials and construction. In some cases these can account for up to half of a new building’s lifetime carbon impacts – before it has even been occupied. We are delighted to see GLP leading the way by becoming the first developer to achieve net zero carbon for construction using UKGBC’s Framework. We hope that this will act as an example to the rest of the industry and inspire others to go even further in reducing the impacts from construction.”
Purfleet 338 Will Include 29,000 Sq Ft of Offices Green light granted for one of the largest warehouses available within the M25, meeting demand for quality logistics space close to the Capital Customers to benefit from access to a skilled workforce, including 1.6 million qualified locals1 Planning has been granted for a high specification 338,267 sq ft single unit warehouse at Purfleet Commercial Park, Essex. Available to pre-let with the ability for an immediate start on site, Purfleet 338 is just 16 miles from Central London and at the heart of the M25 and A13 corridors, providing excellent connectivity across Greater London and the South East. This location has prime access to the national motorway network, only half a mile from junctions 30 and 31 of the M25. This sees it able to efficiently service potential e-commerce, retail and third-party logistics customers, with capability of reaching 21 million consumers, with a combined purchasing power of £453 billion per annum2, within two hours. Purfleet 338 also benefits from a sizeable base of potential employees – with 9,300 job seekers within a 30-minute radius and access to 1.6 million locals with qualifications relevant to logistics and distribution. The warehouse will be developed to a BREEAM ‘Excellent’ specification and will include more than 29,000 sq ft of high quality office space. Sustainably designed and energy efficient, the property will feature electric car charging points and infrastructure for future electric vehicle fleets, solar thermal heating and hot water, and carbon neutral cladding. The wider park has been designed to meet the business, health and wellbeing needs of Goodman’s customers with outdoor seating alongside a pond, mature landscaping, and a delineated running track. George Glennie, Development Director at Goodman, said: “Purfleet 338 sees Goodman continuing our commitment to provide critical infrastructure for delivery of essential goods and services. “With this new development, we will further connect our customers with their consumers both in the Capital and wider South East region, helping them meet growing expectations for faster deliveries.” Purfleet 338’s plans also include an 18 metre clear internal height, 55 metre yard depth, 4MVA of power and a cladding system designed to meet chill-store requirements – offering customers flexibility in usage while maximising operational efficiency. Glennie continued: “Goodman focuses on securing key sites for properties that stand the test of time. We know that well located, designed and managed properties are better prepared for the challenges of tomorrow. Our Purfleet investment allows for rising demand in flexible, high-specification spaces that support supply chain efficiencies.” To find out more about Purfleet Commercial Park, please visit the website for further details. Joint agents marketing the scheme are Cushman & Wakefield and JLL.
The logistics sector across the Northern Powerhouse region has the potential to achieve transformational growth and create an additional 174,000 jobs by 2050 if key barriers are addressed, according to research by logistics developer Tritax Symmetry and planning and development consultancy Turley. Areas identified as needing ‘substantial improvement’ to achieve the region’s growth potential include: supply of sites and premises, infrastructure investment and development, closing the North’s skills gap and delivering planning policy reform. The Gross Value Added (GVA) of the logistics sector in the North of England is £15.3 bn a year and is estimated to rise to £20.9bn a year by 2039. The research looked at numerous reports including the 2016 Northern Powerhouse Independent Economic Review which identified the potential growth of the logistics sector under a ‘transformational growth’ scenario. Under this scenario, the sector is identified as having the potential to achieve growth of 174,000 jobs (11%) and £29.6 billion GVA (8%) between 2015 and 2050. Split evenly by year, this equates to an average of 4,970 jobs and £845 million GVA growth per annum, resulting in an estimated annual salary increase of £5.3bn and a total additional 29,190 professional positions. The ‘transformational’ scenario would require in the region of 130 million sq ft of floorspace across 3,000 ha of land. Based on existing ratios of warehouse floorspace to homes, the three regions of the Northern Powerhouse are currently under-delivering logistics floorspace in comparison to housing growth. Commenting on the findings, Matt Claxton planning director at Tritax Symmetry said: “The potential for transformational growth is only achievable if the logistics sector is able to operate effectively and grow so we need to address these issues as a matter of priority. “If these are resolved we have the potential to increase productivity and employment in the North, closing the prosperity gap between it and the rest of England. Logistics is an economic enabling sector, and if this growth is stymied or not supported, then the growth potential of other sectors will likewise be curtailed.” David Diggle, director, planning at Turley continues: “Over the three years to 2018, 15,000 logistics jobs were created in the Northern Powerhouse which is already in line with the ‘transformational scenario’ outlined so it would certainly seem that the Northern Powerhouse is capable of achieving this potential but we need to tackle these areas to ensure we maximise the opportunity for growth.” Speaking about the report’s recommendations Amy Gilham, director, economics at Turley said: “Based on our findings, we have made six key recommendations which will support growth in the logistics sector. The recommendations which include a holistic consideration of logistics space within urban centre development, the quick adoption of strategic spatial plans and ensuring appropriate and adequate allocation of sites for B8 uses, will enable transformational growth of the Northern Powerhouse. “ The Northern Powerhouse region is already home to 25% of the UK’s logistics businesses employing more than 263,000 people. With 12,350 warehouse properties (31% of all properties in England) totalling 538m sq ft (32% of all in England) it has seen an 80% business growth in the five years to 2019. Some of the report’s key findings include: Supply While the North West has the second largest supply of large units of the UK’s regions, the five year average take up of grade A space indicates that there is just 1.45 years left of supply in this area. Speculative development has continued in the region for units over 100,000sqft though generally there is a limited development pipeline of larger units. In Yorkshire and the North East, a record level of take up in 2018 has led to a decline in available supply. In South Yorkshire demand for medium-sized units has increased and activity for larger units has been driven by single transactions such as Amazon at Doncaster iPort. There is a shortage of supply of units under 20,000 sq ft and limited availability of mid-sized units. In West Yorkshire there is supply of around 1.7m sq ft for units over 50,000 sq ft due to continued take up and limited speculative development. The North East is seeing a decline in the supply of large units, particular Grade A, given limited development activity. Skills The logistics industry is made up of many different parts that perform very different functions, and this results in a variety of employment opportunities, both skilled and unskilled, on a full time and part time basis. As the logistics sector becomes increasingly automated there is a need for a greater range of skills within the sector, including IT and engineering. Some steps are already being taken to address the skills gap with developers, occupiers and further/higher education providers working together to develop logistics-specific curriculums as part of the delivery of large new logistics sites. Logistics developers are also working closely with LPAs, local business groups, colleges and skills and training organisations to deliver Training and Employment Management Plans, in order to ensure jobs, training and work experience opportunities are realised for the local area for the lifetime of the development. Leaders of the Northern Powerhouse will need to continue to work with skills and training providers to ensure that the workforce’s skills are well matched to employer requirements. Infrastructure The northern ports are facing a number of challenges around finding suitable land for expansion of existing operations, particularly in relation to port access via road and rail. Digital connectivity (high speed broadband) and power supply are commonly cited by logistics operators as barriers in seeking new sites and premises from which to operate. Improvements to routes which join ports to national transport networks are also required. These include road and rail which at present can be slow and unreliable, further reducing competitiveness. Dedicated air cargo services are currently limited which means that much of the air freight which arrives or departs from the North of England is moved by road. Introduction of dedicated cargo services, or a greater number of long haul passenger services, will help generate
