Developer signs 862,000 sq ft double deal at flagship scheme

SEGRO has signed two deals for more than 862,000 sq ft of warehousing at its SEGRO Logistics Park East Midlands Gateway, leaving just one big box plot available.

Global logistics company, Arvato, agreed a lease for a 220,000 sq ft unit, which is the first speculatively developed warehouse at SEGRO Logistics Park East Midlands Gateway. Arvato secured the BREEAM Excellent rated building in September 2021, whilst it was still under construction, demonstrating the strength of SLPEMG’s position as the UK’s premier logistics and distribution location.

SEGRO has also signed a pre-let agreement with a unnamed supply chain management company to occupy a new 640,000 sq ft, 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.

SEGRO Logistics Park East Midlands Gateway started construction in 2017. It was initially anticipated to be a 10-year programme, however strong uptake means there is only one big box plot remaining, which can accommodate up to 700,000 sq ft, with all other plots being either operational, under development or committed.

Andrew Pilsworth, managing director, national logistics at SEGRO, said: “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. 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 and thrilled that our first speculative unit at the park has let so quickly.

“It’s fantastic that Arvato, which is also a customer of ours in Poland, has selected SEGRO Logistics Park East Midlands Gateway for its new state-of-the-art distribution hub. The building is being developed to the highest design and sustainability standards. It is a great name to add to the logistics park community and will bring valuable employment opportunities to the local area.”

Tobias Uthmann, managing director UK at Arvato Supply Chain Solutions, said: “With the new site, we aim to meet the high demands of our existing as well as potential new customers and are very pleased that the capacity at East Midlands Gateway will allow us to plan for the long term with a distribution centre that fits perfectly into our growth strategy. By 2023, we will be able to excellently implement our growth plan.”