The £480m Airport Industrial Property Unit Trust (AIPUT), managed by Scottish Widows Investment Partnership Ltd, now part of Aberdeen Asset Management PLC, is pleased to announce that it has exchanged contracts with Kuehne + Nagel to deliver the global logistics operator with a new 12,125 sq m flagship warehouse at London Heathrow Airport.
Kuehne + Nagel have committed to take occupation of AIPUT’s flagship warehouse of 12,125 sqm (130,500 sq ft) at AIPUT’s Heathrow South Cargo Centre (HSCC) which will be delivered for the Swiss logistics operator in early 2015. The new warehouse will enhance their award winning air freight division, along with a number of their growing specialist supply chain operations.
At 12,125 sqm, this is the largest warehouse letting at London Heathrow in 2014, and one of the largest to a dedicated air-cargo service operator for several years at the international airport. This follows the growing trend by international air-cargo-related service providers to secure long term warehouse operations in core strategic locations around Heathrow, to benefit from the improving global economic and air-freight industry and the expected growth of the hub airport.
The long term commitment by both parties follows the recent lettings at HSCC with GE Aviation and DO&CO Events & Catering, and reinforces the cargo park as one of the leading off-airport multi-let warehouse hubs at London Heathrow. HSCC is now a fully-let scheme of 18,600 sq m (200,000 sq ft). The park has been developed and customised to serve the growing airport service-operator community, providing 24/7 secure and efficient modern warehouse accommodation which is in short supply around the airport - availability of Grade A warehouse accommodation at Heathrow is fast moving to an all-time low. The park offers a range of attractive service and transport efficiencies for its specialist occupiers to the airport, with direct access to Central London on the A30 as well as Europe and beyond given its quick access to the road, rail and port connections.
Nick Smith, Fund Manager of AIPUT, commented: “It is a privilege to welcome Kuehne + Nagel as a new customer to AIPUT’s portfolio, and to be delivering a landmark warehouse for this market leading and innovative cargo management operator.
“There is a seismic shift in the specialist air freight supply chain industry and we are delighted to forge this relationship with Kuehne + Nagel who are investing significantly in this arena. Our strategic warehouse will provide a range of real-time logistics efficiencies and connections to the airport and beyond, and allow Kuehne + Nagel the step-change to showcase their market leading services and capabilities. In turn, this co-investment will significantly enhance London Heathrow’s air-cargo service capabilities and reinforce its position as a leading international hub airport.
“We have worked closely with Kuehne + Nagel to tailor a modern warehouse that will support a flagship operation for their growing world-wide logistics business, and in turn deliver a core long term asset for AIPUT’s institutional investors.”
Melinda Cross, Director JLL Heathrow Industrial Team, commented: “The Heathrow area continues to be a hot spot of demand from occupiers due to its international transport hub location and the recent material improvements in airfreight through the airport. Kuehne + Nagel have taken the largest space currently available on the market to reposition their UK business. Unit 1 Heathrow South Cargo Centre provide Kuehne + Nagel with a high profile HQ building, with outstanding visibility amongst the cargo zone of Heathrow, and from the air. Our statement building also provides quick access to the airport and its Cargo Terminal, and to the rest of the UK and Europe with its connectivity to the road, rail and port networks.”
AIPUT was represented by Jones Lang LaSalle, DTRE and Eversheds. Kuehne + Nagel was represented by Clews & Co.