Logistics specialist concludes largest UK letting with deal on 645,000 sq ft
Logistics specialist Logicor has secured its largest UK letting ever with a deal for 645,000 sq ft of space in Staffordshire.
The company has agreed a long-term lease with food sector specialist XPO Supply Chain UK for a warehouse at Bonehill Road, Tamworth.
The site previously housed a combined 595,000 sq ft warehouse unit, split into three bays. The deal will see the middle unit redeveloped, raising the eaves height and adding an extra 50,000 sq ft of Grade A warehouse space to accommodate XPO’s new business contracts.
The works are due to complete in January 2018.
XPO has secured a new distribution agreement with Premier Foods and the deal will see the company move its multi-site warehousing operations to the Tamworth facility.
XPO expects to manage throughput of approximately two million pallets per year at the dedicated centre, which has the capacity for 80,000 pallets and will be fully operational from mid-2018 following a phased transition programme.
The facility will employ around 170 workers and be equipped with XPO’s state-of-the-art warehouse management system.
Transport services will be handled with a bespoke distribution fleet of approximately 70 vehicles and 200 trailers. XPO will customise its transport management software to ensure that Premier Foods achieves optimal fleet utilisation at all times.
Chris Hyde, XPO Logistics’ business unit director–supply chain in the UK, said: “This is an exciting and significant win for us. Our work with Premier Foods will be supported by the scale and flexibility of our operations in the UK, allowing us to provide a fully integrated and seamless solution to Premier Foods throughout their network.”
Paul Thompson, Premier Foods’ operations director, said XPO had demonstrated the capabilities required for the intense logistics operation.
“This strategic integration will be very important in helping us service our customers more effectively. We’re delighted to begin working together, and we look forward to building a long-term relationship with XPO,” he said.
Charlie Howard, Logicor’s UK managing director, said: “We are delighted to conclude our largest UK letting, building on our strong relationship with XPO. This was a complex deal, with a number of parties involved, facilitated by working closely with our customer to accommodate their requirements.”
Logicor is one of Europe’s largest logistics real estate specialists with a 13.6 million sqm portfolio spanning 17 countries. The pan-European strategy is underpinned by offices in 12 of the continent’s core markets, including the UK, France and Germany.
