Parcel delivery giant Hermes has secured an £85 million funding for its 339,827 sq ft parcel hub in Barnsley, South Yorkshire through South African property investor Equites Property Fund.
The agreement provides that Equites Newlands Group Limited, a company in which Equites International owns 60% of the shares with Newlands Property Development owning the remaining 40%, will act as the developer of the new facility.
Upon completion, the distribution facility will be wholly-owned by Equites and will be let to Hermes on a 20-year, triple net, fully repairing and insuring lease at a rent of more than £3.9 million a year.
The property secured detailed planning last month and is located at Hoyland Common, Barnsley adjacent to J36 of the M1. It will serve as the latest “super-hub” for Hermes and will handle 1.3 million parcels a day, making it the largest of its kind in Europe and could create more than 1,300 jobs. Furthermore, compressed natural gas (CNG) vehicles will be based at the hub and there will be provision for electric cars. It will have 163 dock-level loading doors and four level-access loading doors as well as a low site coverage ratio of 16%.
Andrea Taverna-Turisan, Chief Executive of Equites, said: “This development agreement is an exciting opportunity for Equites, as it is the first signed development deal to arise from the company’s strategic partnership with Newlands and is consistent with Equites’ UK investment strategy of curating a high-quality logistics portfolio, which promotes strong total returns in the medium to long term. We are also especially pleased to welcome Hermes as a long-term tenant, which is one of Europe’s largest and most successful parcel delivery businesses.”