The news that SEGRO has let 862,000ft2 in two deals means there is only one plot left at the 700-acre site with all land and plots selling or under offer within five years of the start of construction.
It was originally anticipated that the scheme would have a 10-year development programme. However, strong take-up means there is only one big box plot remaining, which can accommodate up to 700,000ft2, with all other plots being either operational, under development or committed.
“We are seeing sustained warehouse demand in the East Midlands logistics market, with ongoing supply chain challenges driving companies to build operational resilience and occupy high-quality space in the best locations,” said Andrew Pilsworth, Managing Director, National Logistics at SEGRO. “We’re proud that we have been able to develop SEGRO Logistics Park East Midlands Gateway more quickly than originally anticipated to meet these customer requirements.”
In the first of the two deals recently completed, global logistics company, Arvato, took the 220,000ft2 speculative unit, which SEGRO developed this year in the light of customer demand.
Arvato secured the BREEAM ‘Excellent’-rated building in September 2021, while it was still under construction, demonstrating the strength of demand in the market.
SEGRO has also signed a pre-let agreement with a supply chain management company to occupy a new 640,000 ft2, BREEAM ‘Excellent’ warehouse on a 10-year term. Construction is scheduled to start in January and complete in Autumn 2022. The customer is expected to create up to 400 new jobs at the 30-acre site.
The new customers will join Kuehne + Nagel, Amazon, ShopDirect, Games Workshop and DHL at the 700-acre logistics park, which is located adjacent to East Midlands airport and close to Junction 24 of the M1, which provides providing excellent connectivity to the UK road network.
The on-site rail terminal, operated by Maritime, is fully operational with trains transporting goods across the UK linking other strategic rail freight interchanges and major UK ports such as Southampton, Felixstowe, London Gateway and the Channel Tunnel. Once complete, SLPEMG is expected to support over 9,000 jobs.