Prologis, the UK’s leading owner and developer of industrial logistics parks, has further strengthened its footprint in London with the acquisition of 4.5 acres of strategic industrial development land, adjacent to Prologis Park Beddington Lane in Croydon.
The site, which has consent for industrial logistics use, will provide much needed additional space for logistics companies looking to serve both Croydon and the central London market. In addition, the acquisition will allow the sector to cope with an increase in demand, fuelled by COVID-19, which saw online sales as a percentage of total retail sales jump from just 18% in February 2020 to 32.8% in May.
“The importance of the logistics sector to the health and wealth of the nation has been highlighted during the ongoing pandemic”, said Oliver Bycroft, Vice President in the leasing and development team at Prologis UK. “With the volume of online sales unlikely to drop back to pre-COVID levels, finding available logistics space close to urban centres such as London will become more challenging.”
Over the past 18 months, the property company has invested over half a billion pounds in London and the Home Counties, to ensure it can provide the urban logistics facilities its customers need, and continues to invest in this important urban logistics location.
“The UK retail market is changing, as more and more people order goods online; because of this, our customers, who include household retail names such as Amazon, Argos and John Lewis, need logistics facilities close to where people live and work, so they can fulfil deliveries of goods ordered online efficiently and sustainably,” Bycroft continues.
“We are in the process of working up our proposed scheme, although there is currently a window of opportunity for us to tailor the layout to meet the requirements of individual occupiers. We are conscious that many, particularly e-commerce, last mile, and parcel operators, have specific needs and we are keen to keep an open mind and explore these types of requirements further.
In addition to providing much needed industrial logistics space, the expansion of Prologis Park Beddington Lane will provide a further boost to the local economy, with the creation of new jobs and ongoing investment in the local area. The development will also provide occupiers with a range of sustainable features, including charging points for electric vehicles, enabling goods to be delivered more sustainably. Additionally, as the location is close to public transport links, employees will be able to travel to work easily and sustainably, helping to reduce local congestion.
Sole selling agent Alex Gale at SHW commented “We were delighted to get this sale completed during the middle of the current pandemic and it just goes to underline the importance of Croydon as the main go to last mile logistics location in South London.
“The site benefits from an excellent transport network, whilst being close to those all-important chimney pots. We expect there to be strong interest from occupiers for a range of industrial and logistics uses.”
SHW has been retained by Prologis as letting agents for the scheme.