Industrial logistics property developer Prologis, has snapped up a 118,284 sq ft existing wholesale cash & carry in Croydon, which it intends to redevelop as a last mile logistics hub.
It has already secured an occupier, who will take a long-term lease after its refurbishment. The new facility will provide much-needed additional capacity to strengthen last-mile delivery operations.
Under the new agreement, the property and 8-acre site will undergo an extensive refurbishment programme and external alterations will allow the building to be re-purposed for logistics use. Part of the refurbishment will include installing charging points for electric vehicles, allowing goods to be delivered more sustainably.
Oliver Bycroft, vice president in the capital deployment and leasing team at Prologis UK said: “The importance of the logistics sector to the health and wealth of the nation has been highlighted during the pandemic.
“With the volume of online sales unlikely to drop back to pre-COVID levels, finding available logistics space to serve urban populations, such as London, will become more challenging.”
Situated nine miles south of Central London, and with good access to the M25, Croydon is an important hub in the UK’s logistics network. The town is already home to one of the largest commercial centres outside Central London and is well positioned for last-mile logistics, due to its proximity to a densely populated urban area.
Bycroft added: “The UK retail market is changing, as more and more people order goods online; because of this, our customers, who include Sainsbury’s, DHL and Royal Mail, need logistics facilities close to where people live and work, so they can fulfil deliveries of goods ordered online efficiently and sustainably.
“At Prologis, we’ve invested over half a billion pounds in London and the Home Counties over the past 18 months and we will continue to do so. This sustained investment will ensure we can provide the facilities that our customers need.”
The former cash & carry in Croydon lies approximately one mile south east of Prologis Park Beddington, where Prologis is currently constructing 213,000 sq ft across six units, on a speculative basis.
