The UK logistics market is set to grow, driven by an uplift in online sales and increased demand for well-located, high-specified warehouse units. Over the last three years, alongside our operating partners we have developed over £450m of logistics assets and in our latest video we explore some of these examples and the environmental considerations that are at the forefront of the developments.
The Covid-19 pandemic has acted as a catalyst for change and accelerated trends that were already in motion.
In the UK logistics market, 2020 was a record year, driven by a 50% increase in online sales, leading to 33m sq.ft of take up, demand at a 10-year high and vacancy rates at 5%.
With the UK logistics market set to grow, opportunities are rife for developers.
At Fiera Real Estate, we have a 17-year UK track record of managing funds that develop commercial real estate.
Alongside our pan UK operating partners, in the last three years we have developed over £450m of logistics assets, that’s 3.5million sq.ft.
These are typically locations that:
– Benefit from a high degree of connectivity via arterial roads
– Are on the edge of major cities and/or motorway junctions
– Suitable for 20,000 sq ft to 250k sq ft of new Grade A units
Environmental considerations are at the forefront of our developments, we target BREEAM Excellent and EPC A rating on all our buildings, with minimum standards to help promote best practices in design, construction, and operation.
Let’s look at some examples…
Alongside operating partner Wrenbridge, we purchased a 10-acre site in a prominent position, 30 miles east of London and 10 miles from the M25 motorway.
The site was located within 30 miles drive of over 3 million homes and offered excellent connectivity to local facilities and transport.
We speculatively built a 3 unit, 220,000 sq.ft Grade A logistics scheme which achieved BREEAM Excellent and EPC A rating.
Features included PV panels, electric car charging points and high efficiency heating and cooling systems.
It was fully leased within 12 months of completion and sold in June 2020.
The building exemplified our strategy of acquiring well-located sites that require wholesale transitioning to meet occupational needs.
With operating partner Opus Land, we recently developed, let and sold our 120,000 sq.ft warehouse near Birmingham.
The former industrial site which we fully remediated prior to construction is located is one mile from the M5 motorway and capitalises on the distinct lack of Grade A warehouses in the area.
The scheme was let and sold within two months of completion and was the largest letting in the Birmingham area in 2020.
At Fiera Real Estate, we believe that the unprecedented levels of change, coupled with strong underlying demographics, are creating a distinct market opportunity to achieve superior risk adjusted returns.
Our proven track record, extensive access to deal flow and granular asset management through our platform of operating partners, provides a unique capability to drive returns for investors.