SEGRO has let a 36,000 sq ft facility to cargo handler Swissport UK. The deal will allow Swissport UK – an existing SEGRO customer - to grow its business and increase cargo handling at the UK’s hub airport, Heathrow.
The leading international aviation services company, which provides airport ground and cargo handling services, has signed a 10-year lease at Unit 1, SEGRO Park Portal Heathrow, a Grade A modern warehouse facility that also includes office space.
Following a record year for cargo at Heathrow in 2017, volumes are currently up 1.6% a year to date at 981,690 tonnes. Consequently, there is greater demand for space from freight handlers to ensure they can efficiently service their customers.
Swissport UK has been a SEGRO customer for over 13 years and now leases a total of almost 185,000 sq ft of space across Heathrow and Stansted Airport.
SEGRO Park Portal Heathrow is in a prime, secure position on-airport with direct access to the Southern Perimeter Road and close to SEGRO’s cargo terminal. The Portal is also well connected with Junction 14 of the M25 within three miles to the west giving swift access to the UK’s motorway network.
Incorporating a range of environmental features including photovoltaic systems and rainwater harvesting, the building has an BREEAM rating ‘Excellent’.
Alan Holland, Business Unit Director, Greater London, at SEGRO:
“We are pleased to provide additional space for one of our long-standing customers that will enable them to effectively grow their business in a highly competitive industry.
“Levels of cargo at Heathrow will continue to increase in the near-term future, and following the parliamentary vote for an additional runway, freight volume is expected to double, so it’s vital for our customers to have the space to respond to current and future demand.”
Swissport UK will join Rolls Royce and DB Schenker at SEGRO Park Portal Heathrow, which is now fully let.
Separately, SEGRO has agreed to acquire the management platform of Roxhill Management Rugby Limited (‘RMRL’).
In 2016, SEGRO and Roxhill Development Group entered a partnership that gave SEGRO phased access, through option agreements, to a portfolio of big box warehouse development sites in the Midlands and South-East regions of the UK. Under the same agreement, SEGRO had the right to acquire the management platform, RMRL, after a period of 30 months.
The transaction exercises this right and will create a single team, based in the Midlands, focused on the management and development of UK big box warehousing. The terms of the transaction are confidential.
Since the original agreement was signed, SEGRO has commenced development of SEGRO Logistics Park East Midlands Gateway and is assessing the near-term development potential of a further five sites. SEGRO retains longer-term optionality over the remaining sites covered by the original agreement.
SEGRO Logistics Park East Midlands Gateway typifies the success of the partnership. The Park is capable of supporting 550,000 sq m of big box warehouse space in a prime position adjacent to the M1 motorway and to East Midlands Airport, Britain’s second largest air freight hub, and will also benefit from its own rail freight terminal. SEGRO and Roxhill have secured customers for 250,000 sq m of new big box warehouse space and construction of the new rail freight terminal has already commenced.
David Sleath, SEGRO Chief Executive, said:
“By combining SEGRO’s and Roxhill’s teams, we will have the resources to deliver on our strategy to grow our big box warehouse position in the two strongest logistics regions in the UK and the expertise and network to create an on-going pipeline of schemes in the future.
“We will be even better placed to meet occupier demand for modern, well-located warehouses which are an increasingly critical component of the national infrastructure dealing with the impact of e-commerce.”
David Keir and Jason Dalby, founders of the Roxhill management team, said:
“We are pleased that SEGRO have taken up their option to acquire RMRL which is testament to the quality of the staff and the progress that they have made on the joint venture sites since 2016.
“The pipeline of land for development at SEGRO’s disposal is market leading and affords an exciting opportunity for both SEGRO and the RMRL employees alike.”