Logistics real estate trend report - market on the upswing

Dachser has been using the 28,000 square meter logistics hall developed by Panattoni Europe in Erlensee since the beginning of August; one third of the space is designed as a refrigerated warehouse. Photo: Panattoni

Fred-Markus Bohne, Managing Partner at Panattoni Europe, sees the letting of the new development to Dachser as a success: "The full letting of our speculatively constructed Frankfurt East logistics park to Dachser confirms our strategy. Speculative planning enables us to meet the demand for logistics properties even in hot spots such as Frankfurt, even at short notice.

New multi-user logistics center

Garbe Industrial Real Estate GmbH is developing an almost 10,000 square meter logistics hall for the TGL Group (The Green Line) in Ochtrup, Münsterland. It is being built on a plot of land measuring over 60,000 square meters, which the Hamburg-based project developer has partially acquired from TGL Warehousing, a company belonging to The Green Line Group. Garbe Industrial Real Estate was advised by Logivest. The consultancy firm, which specializes in logistics properties, accompanied the negotiations.

Stephan Dalbeck, Verdion: "Verdion's iPort logistics park in Doncaster is one of the most outstanding logistics real estate projects in the UK." Photo: Verdion

Top logistics property in the UK

Verdion is to expand iPort, a 560,000 square meter intermodal logistics park in Doncaster, South Yorkshire, by a further 250,000 square meters in a second construction phase. The approximately 220,000 square meters of the first construction phase of the project development have already been successfully let to Amazon, Fellowes, CEVA and Lidl. iPort has both speculative and built-to-suit space of between around 4,000 and 93,000 square meters.

Stephan Dalbeck, Business and Portfolio Director at Verdion, on the multimodal logistics project, which costs around £500 million in total: "Verdion's iPort logistics park in Doncaster is one of the most outstanding logistics real estate projects in the UK. A logistics park with a total logistics area of around 557,400 square meters is being built on an area of around 1,363,800 square meters. Buildings of various sizes for a wide range of logistics purposes form a highly attractive location in the middle of the UK. A purpose-built road link, a highway connection and a dedicated 14-hectare rail freight terminal on the site provide the ideal infrastructure. The distance to the important seaport of Hull is only around 30 kilometers, providing an excellent platform for import and export activities in particular.

There are already two modern logistics halls on the site, each measuring 7,300 square meters, which together offer more than 20,000 pallet spaces. Garbe began expanding this multi-user logistics center in May of this year. The new logistics area will be equipped with two ground-level gates and ten dock levellers and will also be developed for the storage of water-polluting substances, which will enable the global company to expand its portfolio.

The logistics center is due to be completed and put into operation in December of this year. As Axel Wienandts, Managing Partner, emphasizes, "the existing warehouses are very well utilized". This is why TGL currently operates three external warehouses: "They will then be consolidated, of course".

Contract logistics for a wide range of industries

Within the multi-user logistics center, contract logistics services are provided for various companies from a wide range of industries. These range from warehousing and order picking in the B2B and B2C sectors to distribution, including customs clearance.

The Derby Cycle logistics center in Cloppenburg was developed by Verdion and has a capacity for around 150,000 bicycles. Photo: Verdion

One of the customers for whom the worldwide supply of spare parts is handled in Ochtrup is a major machine manufacturer: an international logistics service provider packs and ships an average of 5,000 spare parts for machines per day according to customer specifications. The reason for the expansion is the continuing demand for optimum stocking and the fastest possible delivery of spare parts.

"The north-western Münsterland region in the direct vicinity of Lower Saxony and the Netherlands is a highly interesting location both nationally and internationally," emphasizes Jan Dietrich Hempel, Managing Director of Garbe Real Estate GmbH.

Logistics center for 150,000 bicycles

Hellmann Worldwide Logistics has been responsible for the operational management of Derby Cycle's central warehouse since the beginning of 2016. Photo: Hellmann

Verdion, a specialist in the development of and investment in logistics properties, has pre-let a new logistics property in Cloppenburg with an area of 25,381 square meters to Derby Cycle Werke GmbH. The investment volume for the property amounts to 15 million euros. With a capacity for around 150,000 bicycles, the new warehouse reflects Derby Cycle's growth in its European markets. The company is the largest bicycle manufacturer in Germany in terms of turnover. With its Kalkhoff, Focus, Raleigh, Univega and Rixe brands, Derby Cycle sells almost half a million bicycles every year, including more than 100,000 e-bikes and pedelecs, in which the company claims to be the leader in Germany. The new logistics center has been connected to Hellmann Worldwide Logistics' general cargo network since the beginning of October 2016. The logistics service provider has been responsible for the operational management of the central warehouse since the beginning of 2016.

Logistics for 5,000 specialist retailers in 60 countries

Daily delivery volumes of up to 4,000 bicycles are made possible based on a storage and picking concept specially developed for bicycle storage from the central warehouse in addition to procurement logistics as part of seafreight/airfreight from the Far East in conjunction with Hellmann eChain as well as part and full loads.

A customized logistics concept is essential in order to offer our customers the best service worldwide," says Thomas Raith, CEO of Derby Cycle HoIding GmbH. "With an on-site capacity for up to 110,000 bicycles, we are able to centrally serve the needs of almost 5,000 specialist dealers in more than 60 countries. Especially with regard to seasonal and weather-dependent fluctuations, optimal planning is therefore required for smooth operational processing, which we guarantee with our logistics partner Hellmann Worldwide Logistics".

"We use equipment specially tailored to the requirements for Derby Cycle's specific processes," says Kai Hasenpusch, Chief Commercial Officer Germany at Hellmann. "For example, navigation-guided industrial trucks in a special design support storage and retrieval in the high-bay warehouse. In addition, the comprehensive warehousing and picking concept also includes value-added services such as repacking bicycles from slipcase to full cartons or adding operating instructions for e-bikes, alongside the areas of incoming goods, picking and loading."

New e-commerce logistics center for Amazon

In fall 2016, real estate group VGP signed a new long-term lease agreement with Amazon for its logistics and business park in Frankenthal, Rhineland-Palatinate (VGP Park Frankenthal). The e-commerce company will lease a logistics center with a total rental area of around 60,000 square meters for warehouse space and associated office space from VGP. The project development is the exclusive responsibility of VGP. Once completed, the high-tech facility will be one of the most modern in Europe.

The new "Warehouse 10" at Georg Utz AG in Bremgarten optimizes intralogistics processes. Photo: IE Group

Ultra-modern industrial building

IE Plast, part of the IE Group, Munich, has built a new warehouse for Georg Utz AG, one of the leading manufacturers of storage and transport containers, pallets and workpiece carriers. IE Plast handed over the new logistics hall "Warehouse 10" in Bremgarten, Switzerland, one month earlier than planned. The hall will primarily be used as an extension to the warehouse, but also offers new space for quality assurance and the Q-test room as well as for various maintenance departments.

The building was integrated into the existing buildings on three sides during ongoing operations. As Percy Limacher, Managing Director of IE Plast, emphasizes, "this project includes all the planning disciplines of a state-of-the-art industrial building".

IE Plast was responsible for the operational, building services and building planning, including the entire implementation. The warehouse technology was brought up to the latest state of the art and the logistics processes were realigned to meet Utz's requirements. At the same time, it had to be ensured that the logistics were ready for use at all times. The additional lifting platform on the west side of the building enables truck drivers to load the produced boxes independently. The accommodation of quality assurance and the Q-test room also shortened distances and optimized personnel flows.

The handover and commissioning of the logistics center is scheduled for the end of 2017. According to Amazon, 1,000 permanent jobs will be created in the first year after the launch. In addition to the logistics space, VGP will also build the associated office space and 1,200 parking spaces for employees on the 17.4-hectare VGP Park Frankenthal. This new project is another example of how e-commerce companies such as Amazon are increasingly driving growth in the logistics real estate sector.

"E-commerce has become the strongest growth driver for logistics real estate in recent years. We are therefore delighted to welcome Amazon to our VGP Park Frankenthal," emphasizes Han Van Geet, CEO of VGP. "The development of a tailor-made state-of-the-art logistics center enables us to demonstrate that we can meet the highest quality standards and requirements for future-oriented and competitive logistics properties."

Reinhard Irrgang