Prologis concludes 336,000 sq ft Tamworth lease deal with Hermes

PROLOGIS has concluded a lease agreement with Hermes Parcelnet for a 336,000 sq ft distribution facility at Prologis Tamworth 594 in order to facilitate growth for the logistics business.  

The building, which provides a total of 594,444 sq ft, was one of the 11 buildings recently purchased by Prologis European Logistics Partners Sàrl (PELP), a 50/50 joint venture between Prologis and Norges Bank Investment Management (NBIM).

Hermes, one of the UK’s leading consumer delivery specialists handling more than 163m collections and deliveries each year, works with more than 120 leading high street, catalogue and online retailers such as Next Directory, ASOS, Debenhams and John Lewis. The company has grown rapidly in recent years to meet increasing levels of customer demand.  

The new facility at Tamworth will provide strategically located warehouse accommodation as part of an expansion to the company’s hub and depot network to handle an expected 15% increase in parcel volumes during 2013.

“We needed the additional hub capacity to ensure we had the necessary infrastructure and resources in place to meet the precise needs of our retail customers during 2013 and the significant throughput capability will ensure we are best placed to take advantage of the continuing growth in online shopping,” said Adam Leach, Estates Manager at Hermes.

“Prologis has worked closely with us quickly and effectively to develop a property solution that can be adapted to meet our exact requirements and timescale.”

Work to divide the building into two separate units is now on site and Prologis said interest in the remaining 258,000 sq ft was strong.

“The home delivery sector is seeing unprecedented growth and this is one of the reasons for the increasing demand for logistics space in prime distribution markets such as the West Midlands,” said Andrew Griffiths, managing director of Prologis UK.

“We are delighted that our recent acquisition of Prologis Tamworth 594 meant that we were able to react immediately to meet Hermes’ urgent requirement.”

North Rae Sanders and Dowley Turner Real Estate acted for Prologis.

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