Prologis, the UK’s leading developer of industrial logistics property, has acquired a 118,284 sq. ft. existing wholesale cash & carry in Croydon.
At the same time as the acquisition, Prologis has entered into a forward commitment with an occupier, who will take a long-term lease after its refurbishment. The new facility will provide much-needed additional capacity to strengthen last-mile delivery operations.
Under the new agreement, the 118,284 sq. ft. property and 8-acre site will undergo an extensive refurbishment programme and external alterations will allow the building to be re-purposed for logistics use. Part of the refurbishment will include installing charging points for electric vehicles, allowing goods to be delivered more sustainably.
In addition to providing more logistics space in the London area, the refurbished facility will boost the local economy, with the creation of new jobs and encourage further investment.
“The importance of the logistics sector to the health and wealth of the nation has been highlighted during the pandemic”, said Oliver Bycroft, vice president in the capital deployment and leasing team at Prologis UK. “With the volume of online sales unlikely to drop back to pre-COVID levels, finding available logistics space to serve urban populations, such as London, will become more challenging.”
Situated nine miles south of Central London, and with good access to the M25, Croydon is an important hub in the UK’s logistics network. The town is already home to one of the largest commercial centres outside Central London and is well positioned for last-mile logistics, due to its proximity to a densely-populated urban area.
“The UK retail market is changing, as more and more people order goods online; because of this, our customers, who include Sainsburys, DHL and Royal Mail, need logistics facilities close to where people live and work, so they can fulfil deliveries of goods ordered online efficiently and sustainably,” Mr Bycroft added.
“At Prologis, we’ve invested over half a billion pounds in London and the Home Counties over the past 18 months and we will continue to do so. This sustained investment will ensure we can provide the facilities that our customers need.” Councillor Manju Shahul-Hameed, Croydon Council’s cabinet member for economic recovery and skills, said: “As we recover from the economic impact of the pandemic, this kind of investment in our borough will be more important than ever, and we are currently consulting the public on the creation of a new development masterplan for the Purley Way that will shape the area’s sustainable growth over the next two decades with more homes, businesses, jobs and open spaces.”
The former cash & carry in Croydon lies approximately one mile south east of Prologis Park Beddington, where Prologis is currently constructing 213,000 sq. ft. across six units, on a speculative basis.
