Logistics Property Making Way for HS2 SUPPLY VS DEMAND
“The fi rst high-speed train will pull into Birmingham in just 12 short years. But the property journey is already well underway”
Warehouses on the rails
David Thame investigates the upheaval HS2 – the proposed high-speed rail link between London and Birmingham – is already causing for logistics businesses situated on or near the route.
UK Mail
UK Mail’s new purpose-built hub, which will have the capacity to accommodate UK Mail’s continued growth, will allow the group to further automate its parcel operations.
With the installation of new automated sortation equipment, UK Mail plans to increase the proportion of parcels it handles automatically from 20% to around 80%.
Guy Buswell, chief executive at UK Mail, says: “Prologis Park Ryton was selected following an extensive search of real estate in the West Midlands area. We have worked closely with Prologis to design a state-of-the-art facility that will support our business growth and help us maintain our position as the leading parcel carrier in the UK.”
The UK Mail facility follows closely behind Prologis buildings for Network Rail, Hi Logistics, and Freeman, as well as a 225,000 sq ft speculative unit that is currently under construction.
North Rae Sanders, Jones Lang LaSalle and Gerald Eve acted for Prologis.
14 March 2014
You won’t be able to catch a high-speed train to Birmingham until 2026 – but the delays and disruption have already
begun. A few weeks ago UK Mail became the fi rst major logistics occupier forced to move premises as a result of the £21bn London-to-Birmingham fi rst phase of the HS2 project.
UK Mail will move from Erdington in
Birmingham to a 231,000 sq ft built-to-suit unit at Ryton, Coventry, following the deal with landlord Prologis, as its existing base has been compulsorily purchased by the Department of Transport for HS2. Meanwhile, HS2 proposals are blighting sites that could play host to new logistics fl oorspace. The former LDV Vans site at Washwood Heath – now owned by insurance giant AXA – was to have been a major business park. Those plans are now
www.shdlogistics.com
in doubt. It’s hard to say how many more warehouses could be affected. Next month, the Department of Transport will begin to make compensation offers to affected businesses – a step likely to prompt more relocation activity. Until then it isn’t clear how big the problem will be.
RELOCATION ACTIVITY
Some expect a surge in relocation activity in an already competitive market for good quality logistics buildings. IM Properties – whose gamble in building two 169,000 sq ft speculative warehouses at the 400-acre Birch Coppice business park near Tamworth has now paid off in two early lettings – is among the most upbeat. Development director Richard Lawrence says: “There’s going to be more. We’re already speaking to people about HS2 relocations. We could >>>
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