British Land is to complement its retail park business with the development of new logistics warehouse space for last-mile delivery inside the M25.
The company is focusing on a three-pronged approach which will include retail park conversions, desensification (increasing density) opportunities and repurposing and mixed-use in Central London.
The company has ongoing projects in each opportunity. It has acquired Thurrock Shopping Park for £82m where it says it has the potential to deliver a double-height, urban logistics warehouse that makes use of its prime positioning just off the M25.
Meanwhile the company also acquired Heritage House in Enfield for £87m, which it describes as a well-located, urban logistics warehouse where it intends to increase densities by adding an additional floor. The Enfield deal marked British Lands’ first urban logistics acquisition.
In Central London, it has acquired the Finsbury Square car park for £20m, with plans to repurpose it to deliver an urban logistics hub in the City of London, where supply is highly constrained.
With these new projects, as well as existing opportunities within its portfolio, British Land says the estimated gross development value of its urban logistics opportunities is around £600m.
“The market for urban logistics assets to support last-mile delivery in London remains excellent and we expect continued strong rental growth with further yield compression possible,” the company said in its latest results this week.
