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Robert.Jervis_43227 Jun 11

Kuehne + Nagel extends lease on Heathrow logistics centres

Kuehne + Nagel extends lease on Heathrow logistics centres image
Nationally-important facility for pharmaceuticals and medical products
Aberdeen Standard Investments’ AIPUT fund (Airport Industrial Property Unit Trust) has secured a lease extension to 2030 with Kuehne + Nagel for its Heathrow South Cargo Centre warehouse at Heathrow Airport, securing the site’s pivotal role as a nationally-important facility for the movement and storage of imported/exported pharmaceuticals and medical products, such as life science-related IT equipment.

Heathrow South Cargo Centre is one of a number of AIPUT’s locations working to boost the nation’s resilience in the fight against Covid-19.

Kuehne + Nagel is the world’s second largest air freight forwarder and an established customer of AIPUT, having operated out of the 19,325 m2 Heathrow South Cargo Centre since 2014. GlaxoSmithKline is the leading customer of the warehouse facility, which represents a significant share of the UK’s pharmaceutical imports and exports.

Kuehne + Nagel is joined at the Heathrow South Cargo centre by Do&Co Catering and GE Aviation.

Heathrow Airport is the largest UK import hub for pharmaceuticals and medical products, handling up to 41.0% by value of the UK’s total pharmaceutical imports. AIPUT has supported the business growth of Kuehne + Nagel’s specialist air-cargo divisions on a number of occasions in recent years. The Company also operates AIPUT’s Perishables Handling Centre at Hatton Cross, a 6,735 m2 on-airport temperature-controlled warehouse facility specifically designed to process imported food airfreight from all over the world.

Heathrow has been repurposed in recent weeks to focus mainly on importing essential air freight products to feed and support the UK’s recovery. The gateway airport is currently handling up to 95 dedicated cargo flights each day; 14 times the number in normal times. Overall cargo volumes passing through the airport have been significantly lower than usual due to the dramatic reduction in belly-freight usually carried in long-haul passenger aircraft.

AIPUT manages over 195,095 m2 of high-quality cargo warehousing serving Heathrow Airport, making the fund one of the airport’s leading specialist real estate landlords. Resolution to grant planning permission has recently been secured for two new warehouse buildings set to deliver a further 13,470 m2 of airport-related warehousing serving Heathrow, divided between its dnata City East campus, South Heathrow, and Blackthorne Point site, west of Heathrow which will contribute to the economic and social recovery of both the local area and wider UK

Source: Analytiqa