The Airport Property Partnership (APP), a joint venture between SEGRO and Aviva Investors, has started the construction of an 85,700 ft² (approx. 8,000 m²) development for two new facilities at the North Feltham Trading Estate at Heathrow Airport.
Having successfully secured a 69,670 ft² (approx. 6,500 m²) pre-let facility in the last quarter of 2012 to logistics services provider, Toll Global Forwarding (UK) Limited, for their new UK headquarters, APP has now started to build this new development. A ground breaking ceremony took place on 9th April 2013 to celebrate the occasion, attended by senior executives from SEGRO, Aviva Investors and Toll Global Forwarding.
Toll Global Forwarding (UK) Ltd is already an APP customer, with one of its Heathrow locations at River Gardens, North Feltham. The new and larger facility at North Feltham will enable Toll to consolidate and expand its Heathrow operations at a single site, from where it can provide enhanced supply chain solutions for its customers.
A second self-contained facility of 16,030 ft² (approx. 1,500 m²) is being developed by APP on a speculative basis to provide a modern and efficient industrial warehouse. This new building will benefit from a secure yard, a feature not often available for units of this size in the Heathrow market.
This latest deal to be announced by APP follows on from the two successful pre-lets that the joint venture partnership secured and developed in 2012 on the Portal Site at Heathrow; a 106,600 sq ft UK headquarters and logistics hub for DB Schenker and a 95,800 ft² Heathrow Service Centre for Rolls-Royce.
Andy Gulliford, Director of APP and SEGRO’s Chief Operating Officer, comments: “We have worked very closely with Toll Global Forwarding on their requirements and this new development will provide them with a secure, modern and efficient facility from which they can expand their operations. Additionally, as we are continuing to experience demand for our well located, high quality buildings, we are delighted to be undertaking speculative development in the prime Heathrow market for the first time in five years.”
Toll Global Forwarding Regional MD (EMEA), Hakan Bicil, says: “This new base at North Feltham Trading Estate will provide us with better access to Heathrow Airport’s airline cargo terminals, improve our operational efficiency and enhance our customer service levels. It will also deliver a striking flagship headquarters for our fast-growing UK operations.”
Planning consent for the two new buildings on the 1.73 ha development site was granted in early February 2013 by the London Borough of Hounslow and practical completion is expected in October 2013. Both of the facilities are designed to achieve a BREEAM ‘Very Good’ rating.
The well-established North Feltham Trading Estate is the largest non air-side asset in the APP portfolio at Heathrow. Existing occupiers include Wincanton, LSG Sky Chefs, Fedex and UPS. APP is a joint venture between SEGRO and Aviva Investors. SEGRO is the asset manager, while Aviva Investors is the fund manager.
Source: FTI Consulting