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Next gets go-ahead for giant distribution centre atDoncaster
Next is to build an915,848 sq ft distribution centre at IDIGazeley’s 115
acreG.Park Doncaster scheme –next door to its existing warehouse after it received planning consent fromthe local council. The facilitywill total 915,848 sq ft of floor
space including thewarehouse,office space, andmezzanine
levels.TheWestMoorPark site, is just off Junction4 of theM18 motorway. The plans include conveyor link bridge
fromthenorth easterncorner of the building to principally serve for the transfer of stock fromthe existingNextwarehouse, acrossHolmeWood Lane. Thewarehousewill largely operate onan
automated basis typical ofmanymodern logistic building operators. Itwill have two mezzanine levels and have a total eaves height of some 25.5m. The 40 acre sitewill accommodate 394
car parking spaces, including 21 disabled spaces,which are to be located on the western part of the site. 25 covered parking spaceswill also be provided. 48HGV parking spaces are to be provided to the northern side of the building bayswithin the dispatch yard, togetherwith 15 trailer boxed parking spaces and 55 loading bays. The dispatch yardwill be controlled by securitywithin a gate house via a separate access to the car park.
Office and administration space totalling
68,780 sq ftwill be locatedwithin a four storey element at the front of the proposed warehousewhichwill include a data centre, a staff shop, ancillary staff areas, offices, a call centre and a canteen on the top floorwith a roof top
garden.The proposed development shall achieve BREEAM“very good”. It is thought that the schememay be
forward funded by Tritax as the company ismentioned on the planning application as it owns Next’s existing building atWest Moor Park and that it is proposed that the two buildings will be
co-joined.Tritax has declined to comment as have all other parties. The company paid £60millionfor the
existingNextNDCinJune this year reflecting anet initial yield of 6.07 per cent onthe
acquisition.Therewerenine years left onthe lease subject to five yearly upward only openmarket rent reviewswith thenext reviewscheduled forMarch 2018. The existingNextDCwas originally
developed in2003 and let toNext for a 20 year termwithout breaks. It incorporates moderndesignfeatures including 17.5 metre eaves,office accommodation, cross docking,extensive and secure loading and car parking facilities,and a lowsite cover of approximately 45 per cent.
The buildingwas extended in2005 to
755,052 sq ft of ground floor area; in addition,a first and second floormezzanine storage area of 106,552 sq ftwas installed, with a sophisticated automated storage
system.Since 2008 the buildings have been thenational storage and distribution warehouse forNext’s successful furniture
range.This businessmodel has grown significantly over recent years and has resulted inanacuteneed for additional warehouse space to continue to operate as itsnational distributioncentre. Tritax acquired thewarehouse for itsBig
BoxREIT.RoebuckAssetManagement represented theCompany.CBRE represented the vendor. ColinGodfrey ofTritax said of the
acquisition in June this year: “Doncaster is one of themost important distribution locations in theUKand the immediate surrounds have attracted occupiers such as Ikea,B&Q,Tesco,Wincanton,The Range andDFS,due to excellent transports links and less congestedmotorways. It remains a core location forNext’s operations and Tritax Big Box REIT is delighted to have made this acquisition.” Tritax also forward fundedNext’s 1.85
millionsq ft clothesDCatBrookfieldsPark inRotherhamin2006 off a 25 year lease withno breaks and fixed rental uplifts.
Profits rise atWincanton
Wincanton increased its underlying operating profit by 2.9 per cent to £24.9m in the first half, whiles sales were up 1.6 per cent at £550.9m. Chief executive Eric Born highlighted
eBay Enterprise to open fulfilment centre inGermany
eBay Enterprise is to open a new European fulfilment centre in Germany in the second quarter of 2015, reflecting the double-digit growth it has experienced over the past year. The 280,000 sq ft facility will be opened at
Halle north of Leipzig. It will usemore than 70 carriers and offer 350 service options for cross- border shipping throughout Europe. “Fulfilment remains the lynchpin of a
successful omni-channel operation and this new German facility allows us to support our clients’ local and pan-European fulfilment needs,” saidMichael Kliger, vice president international at eBay Enterprise. “We are committed to providing European
brands and retailers a localised fulfilment and shipping solution that can offer the scale, reliability, and cost efficiencies they demand for their digital operations on a global level.”
new business wins withHowdens and Halo Foods, as well as contract renewals with General Dynamics,Waitrose wines and spirits, adidas, Total and Britvic. In the contract logistics division, growth
was strongest in the FMCG, construction, and retail grocery sectors. Sales slipped back in retail generalmerchandise, and tanker & bulk businesses. The division’s underlying operating
profit for the period was £20.9m, up 6.1 per cent. It said this reflected its drive to
improve operational efficiency and minimise costs together with the impact on mix from the change in the revenue profile. In the specialist business segment,
Wincanton saw growth in the container operations as well as in Pullman the vehiclemaintenance and repair specialist. Debt reduction has been a key task for
the group. Born said it had completed a refinancing of the business to extend its debtmaturity profile. Born said: “These results represent
another solid half of operational and financial performance.Wincanton continues to focus on contract renewals
and contract wins with existing and new customers.We remain committed to further reducing cost and improving asset efficiency for the benefit of our clients and to improve our performance. “The successful refinancing in the
period provides a strong financial platformand we are confident that we remain on track tomeet our expectations for the current financial year.” StewartOades has become an independent non-executive director of Wincanton.Oades is currently a non- executive director of Palmer &Harvey and a non-executiveDirector ofMWBrands. He was president of the Freight
Transport Association from2009 to 2013, and a non-executive of Clipper Group from2009 to 2011. He was chief executive of Christian Salvesen from 2005 until 2008.
December 2014 Supply Chain Standard
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