Airport Property Partnership (APP), through its joint venture partner and asset manager SEGRO, has announced four deals across its unique portfolio of on-airport properties totalling more than 70,000 ft² (approx. 6,500 m²).
Two of the deals, to Royal Mail and Worldwide Flight Services (WFS) at Stansted Cargo Centre and Gatwick World Cargo Centre respectively, feature properties with direct airside access. APP is unique in its ability to provide such properties at London's Heathrow, Stansted and Gatwick airports, which enable cargo to be transported directly to and from the airport runway, eliminating the risk of potentially costly delays.
At Stansted Cargo Centre, Royal Mail has signalled its commitment to the location in a 39,500-ft² deal. The company, an existing occupier at the site, has agreed a 10-year deal for an additional 18,000-ft² unit as well as a five-year lease extension, to a like date, for its current 21,500-ft² premises. At Gatwick World Cargo Centre, WFS, an existing customer for APP at London's Heathrow airport, has signed a five-year lease for a 20,700 ft² unit.
In addition to its unique airside properties, APP comprises a range of well-located properties both on, and in close proximity to, London's major airport hubs. The remaining two deals have been completed at one of these properties, Stansted 600, which is located within the airport's perimeter and is within minutes of the airside. Both deals involve the expansion of an existing occupier at Stansted 600.
Commenting, Alan Holland, SEGRO's Joint Venture Director said: "These latest deals further demonstrate the increasing demand we are witnessing for well-located premises across London's major airport distribution hubs. In addition to today's announcements regarding Stansted and Gatwick, we have announced eleven new lettings in close proximity to Heathrow airport so far this year."
APP is a joint venture formed between SEGRO and Aviva Investors in June 2010 and includes 23 direct property assets, four development sites and three indirect investments. Approximately 81% of these assets are located at London Heathrow Airport. SEGRO is the asset manager to the fund while Aviva Investors is the fund manager.
Jones Lang LaSalle acted on behalf of Royal Mail.
Source: FTI Consulting