Chancerygate and Bridges Fund Management, a specialist sustainable and impact investor, have started work on the construction of a new 223,000 sq ft Grade A urban logistics development in Leeds.
Called T45, the development will comprise 23 units ranging from 4,450 sq ft to 34,000 sq ft. All units are available on a leasehold or freehold basis, and once complete the scheme will have a gross development value of around £46.5m.
Located on the A63 East Leeds link road within the Cross Green industrial area, the site benefits from excellent access to Leeds city centre and is close by to junction 45 of the M1. Neighbouring occupiers include Amazon, Premier Farnell, John Lewis, FedEx, Lamborghini and McLaren.
Construction work has started on the 11.1-acre site and is due to be completed in early 2026.
T45 is targeting a BREEAM accreditation of Excellent and all the units are designed to have targeted minimum EPC rating of A rating.
Features for all the units include electric vehicle charging points, air sourced heat pumps and solar panels providing green energy. The units will also be constructed from high-performance building materials to reduce CO2 emissions.
Chancerygate development director, Chris Brown, said: “T45 marks the first multi-let urban logistics scheme to be delivered in Leeds on this scale for a generation, and is Chancerygate’s first new build development in Yorkshire.
“T45 will boast stand out ESG credentials and excellent connectivity being situated less than a mile of the M1.
“This, coupled with the inherent lack of new-build multi-let industrial space in Leeds gives us strong reason to believe this will be well received by businesses in the Leeds City Region.”
Joint agents for the scheme are JLL and Carter Towler.
Chancerygate and Bridges Fund Management, a specialist sustainable and impact investor have started construction work a new 119,500 sq ft, Grade A, urban logistics park, which is located on a prime five-acre site on the Swords Road, Santry, Co. Dublin.
Named Airport Trade Park, the scheme will comprise 13 units ranging from 3,600 sq ft to 22,370 sq ft in size which will be available for lease. Once complete, the scheme will have a projected gross development value of around €45m.
The development represents the first investment in Ireland for Chancerygate and Bridges Fund Management, who have successfully delivered similar projects in the UK for more than 10 years.
Planning for Airport Trade Park was granted in July 2024 and the development is being built by contractor TSL Projects, with practical completion due in autumn 2025.
The site is situated 1.7km (1.1m) south of Dublin Airport and approximately 8km north of Dublin City Centre and benefits from excellent connectivity, thanks to its proximity to the airport, M50 & M1 arterial routes.
It also has access to several bus routes and a proposed future MetroLink station at Dardistown, a major piece of public rail infrastructure linking Dublin Airport to the city centre, which is currently in the planning phase.
Airport Trade Park is targeting LEED Gold accreditation, with each unit to benefit from electric vehicle charging points, photovoltaic (PV) panels and air source heat pumps.
In addition, the units will be constructed utilising high-performance building materials. Roof lights, covering 15 per cent of roofed area, will assist in reducing occupational costs and related CO2 emissions.
Ed Dobbs, development director and head of Chancerygate’s Irish office, said: “There is strong demand for strategically located, high quality urban logistics accommodation across the Greater Dublin area.
“Our Airport Trade Park scheme will satisfy this through providing sustainable, Grade A space with excellent transport connections to enable occupiers to efficiently serve the local and the wider region.
“We now look forward to practical completion and delivering much-needed urban logistics units into the market.”
Henry Pepper, partner at Bridges Fund Management added: “We’re excited to start work on this much-needed logistics scheme.
“From our previous developments with Chancerygate over the last decade, we know that this kind of sustainable Grade A space is highly attractive to occupiers looking to reduce their operating costs and carbon emissions. We believe it will be a real asset to Santry and the broader Dublin area.”
Agents for Airport Trade Park are CBRE and Lisney.
A joint venture between developer Chancerygate and specialist sustainable and impact investor Bridges Fund Management have secured planning consent to build 270,000 sq ft of Grade A urban logistics space in Erdington, Birmingham.
Called Torque and located on the former GKN Driveline factory site on Chester Road, the development will comprise 22 leasehold units ranging from 4,500 sq ft to 66,000 sq ft and has a projected gross development value of around £77m.
One prominent plot of land to the front of the estate of 0.8 acres already been sold to the West Midlands Combined Authority (WMCA). There are also ongoing discussion with a number of interested parties regarding the sale of a further one-acre plot of land at the site.
The site is located on the outskirts of Birmingham city centre and in close proximity to junctions 5 and 6 of the M6.
Neighbouring occupiers to the development include Jaguar Land Rover, Volvo and Selco Builders Warehouse, as well as further retail and industrial parks.
All units at Torque will be fitted with electric vehicle charging points and have solar panels on their roofs, which will provide occupiers with green energy on an affordable basis.
The units are being constructed from high-performance building materials to reduce CO2 emissions and occupier operation costs. The scheme is targeting EPC A+ and a BREEAM Excellent rating as a minimum.
Chancerygate development manager, Rob Watts, who is based in the company’s Birmingham office, said: “Torque will help satisfy the high demand from SME occupiers in Birmingham and across the West Midlands for high quality, high specification sustainable urban logistics units.
“We are also incredibly proud to be extending the site’s history, by regenerating it into Grade A urban logistics units focused for SME’s that will be fit for future generations.
“The scheme’s location on what is one of the city’s most prominent sites will be hugely appealing a range for prospective occupiers. This is evidenced by the land deal which have already been agreed with the WMCA and continue to generate such strong interest for the remaining plot.
“Now that planning has been granted, we’re excited about starting work on site and developing what will be much needed space for Birmingham and the wider West Midlands.”
Adam Amijee, investment manager at Bridges Fund Management, said: “”We are delighted to have the opportunity to transform this redundant site in Erdington into a best-in-class urban logistics facility that will support hundreds of jobs.
“We will be targeting market-leading sustainability credentials, using smart design and on-site renewables to ensure that the facility is zero carbon emissions in operation.
“This will appeal to a range of occupiers who want to reduce their running costs, accelerate their Net Zero Journey, and future-proof themselves against possible regulation.”
There is little doubt that the first half of last year was significantly more challenging than most in the property industry thought it would be.
Thanks to a steady trickle of macro events – including the lead up to a UK general election – it was very easy for people on both the occupational and investment sides not to make decisions.
This meant there was little inertia in the occupational market and trying to get investment deals or acquisitions, either initiated or completed, was also difficult.
That said, following the end of the summer, there was a dramatic increase in activity levels, particularly in lease up which is what drives our market and we finished the year feeling very positive.
Big picture
As we start the current year, an element of uncertainty has crept back into macroeconomic sentiment. The significant increase in gilt yields since the start of the year is concerning and leaves the Chancellor having to consider further spending cuts or tax rises so as not to break her own fiscal rules. It almost certainly means that the rate of further base rate cuts will be reduced.
President Trump was inaugurated on 20 January and he has been vociferous about imposing trade tariffs. This is likely to put renewed pressure on inflation and further reduce the likelihood of sustained interest rate cuts in the US. Policy there impacts the UK and Europe.
Home truths
Looking specifically at the UK, there are reasons to be upbeat. The Labour government’s rhetoric is positive and it has set an ambitious target of an average increase in economic growth of 2.5 per cent per annum. However, they have to back this up with action and growth focused policies.
One of the government’s major policy pledges was to reform the planning process to make it easier and faster for approvals to be granted. From a Chancerygate perspective, this could perhaps be the most positive policy (if implemented!) of the new government.
The new National Planning Policy Framework announced in December, whilst focused on residential development, also recognises the importance of logistics developments to the economy. It shows an understanding that when new houses are built logistics infrastructure is required to help create thriving, sustainable communities.
The government has pledged 1.5m new homes over the next five years. According to the British Property Federation’s What Warehousing Where? report, each new home requires an additional 69 sq ft of warehouse space to support its distribution needs.
If the government hits its housebuilding target, this equates to 103.5m sq ft of new warehouse and logistics accommodation. Our industry needs to lobby at both the local and national level to ensure this is delivered.
Europe
As a business now operating in Europe with ambitious plans to expand on the continent, we have some concern over how the trend to right wing political leadership is going to impact markets.
There is going to be a new leader in France, and probably one in Germany. Many populist candidates do not commit to specific economic and trade policies. If they do get elected no one really knows what this means for business, for the economy and, hence, for development. We will keep a close eye on political issues as we consider our growth plans in Europe further.
Continued momentum
We ended last year very positively and have carried that energy and momentum into 2025.
This included entering into a new joint venture with a significant sovereign wealth investor which is specifically targeting multi-let industrial (MLI) as a sector for the first time.
The partnership’s first deal was the £145m acquisition of Questor Industrial Estate in Dartford which completed in December and comprises 685,000 sq ft of MLI accommodation alongside a 10-acre development site.
The Questor deal is a great accelerant for our investment management business. Increasing our AUM has been a strategic priority of ours for the past 18 months.
Our development business remains the cornerstone of Chancerygate. This year we will be delivering more than 1m sq ft of Grade A sustainable urban logistics space with a gross development value of around £250m.
This includes our £77m, 270,000 sq ft Torque development in Birmingham and £35m, 114,000 sq ft Airport Trade Park in Dublin. Both sites will be developed in partnership with our long term funder, Bridges Fund Management.
We are very excited to be (hopefully!) breaking ground on our first development in continental Europe and anticipate work starting in Lisbon and Valencia, in addition to Dublin, during 2025.
Our ambition in Europe is unrequited and is a central tenet of our growth strategy, so we remain actively looking for further opportunities across the continent.
MLI rising
Thanks to our relationship with our new sovereign wealth partner we have the ability and appetite to deploy in excess of £250m on investment assets this year.
The fund’s commitment to investing in a significant manner in the UK MLI sector gives Chancerygate considerable firepower and demonstrates how MLI is becoming a truly recognised asset class amongst the biggest and most notable players in global capital markets.
MLI is no longer something that just fits into an industrial strategy. Investors see it as its own entity where the diversification and granularity of the asset class mitigates risk whilst simultaneously providing the potential for rental growth and, hence, strong financial performance.
Back to the future
Although this is a look ahead to 2025, this year also presents us with the chance to reflect as it marks 30 years in business for Chancerygate.
The solid foundations upon which our company has been built mean we enter this year with optimism and the ability to further grow and evolve Chancerygate throughout the UK and Europe.
We remain wedded to our roots in MLI development which began three decades ago, but are invigorated by the opportunities for expansion both within the UK and Europe.
There is plenty to be done to achieve that objective. However, we believe we have the people, capability and funding for 2025 to be a truly exciting and transformative year for the company.
Founded in 1995, Chancerygate is the UK’s largest urban logistics property developer and investment asset manager and the only one operating nationwide.
The business is also expanding throughout Europe and has established offices in Dublin, Madrid, Lisbon and Paris to further enable its growth plans. To view our latest developments, click here.
To find out more about how we can help with your urban logistics property requirements, call Richard Bains on DL: 020 3582 8072, M: 07880 727672 or E: rbains@chancerygate.com.
ESG (environmental, social and governance) is becoming more prominent in urban logistics developments, driven by increasing regulatory requirements alongside wider societal factors such as climate change.
Here, Cathy Myatt, head of ESG, examines the key drivers and what measures are helping meet this demand:
What is ESG?
There are three pillars of ESG:
Environment refers to issues such as energy and carbon emissions, resource use and the need for climate resilience
Social is the human aspect and involves health and wellbeing, modern slavery and impact on the local communities.
Governance focuses on regulatory compliance, stakeholder engagement and ethical business.
But what are the key drivers and how are practices shifting to meet demand?
Investors push for improved ESG credentials
The impact of climate change together with increasing disclosure and financial transparency requirements covering the UK and EU markets mean there is a greater focus on buildings’ ESG credentials amongst investors. A recent survey by DTRE showed that 75 per cent of investors/developers reported that ESG is a determining factor in every transaction.
For new developments, BREEAM certification is the most common ESG requirement requested by investors, providing them with an easy to use, holistic measure of a building’s sustainability.
Another example investors look at for their portfolio is aligning with the Carbon Risk Real Estate Monitor (CRREM) which sets out a science-based decarbonisation pathway for buildings. The DTRE survey showed that 56 per cent of organisations are costing decarbonisation pathways during acquisitions.
There is also an increasing focus from investors on other related topics including biodiversity, social issues and resilience to climate change.
At Chancerygate, we build multi-let urban logistics developments which attract occupiers ranging from national companies to SMEs. Amongst these, we are seeing some ESG-conscious occupiers who value accommodation with robust credentials, but we have not yet seen evidence that this is driving higher rents. We believe that this will, in due course, follow the pattern of the office market.
However, with operational expenditure being a key priority, tenants are increasingly focused on energy costs. Newly built units are very energy efficient and energy costs are significantly lower than those in older stock. For example, one of our newly built Chancerygate units is estimated to cost over 15 times less to run than an equivalent unit dating from the 1990s.
In time we anticipate occupiers being driven by demands from their clients who are looking to achieve a more sustainable value chain. More contracts now incorporate ESG practices into their terms of service, and accommodation with robust ESG credentials can help to meet this.
We also see an increased focus from tenants on wellbeing and sustainable transport options. These all contribute towards a development’s sustainability credentials. So whilst accreditations such as BREEAM may not in themselves drive occupier demand, many of the contributory factors are becoming increasingly important to occupiers.
Evolving planning regulations
There is an increased focus on ESG during planning. Some planning authorities have increased requirements for BREEAM certifications and the 2021 revisions to the Building Regulations mean buildings must meet more stringent requirements for energy efficiency and reduced carbon emissions.
In addition, the Biodiversity Net Gain Regulations which came into force this year require developers to provide a 10 per cent improvement in biodiversity on their sites.
Guidance and standards in this area are being updated continually – such as the net zero standard for buildings which is was published as a pilot version in September.
Meeting ESG demands with green buildings
There is increasing focus on delivering energy efficient, low carbon buildings. This, alongside incorporating renewable energy measures such as solar panels, can help meet regulations, preserve asset value and meet both tenant and investor needs.
Ensuring buildings are as energy efficient as possible means using high-quality insulative materials, controlling air tightness to reduce air leakage and using energy efficient equipment such as air source heat pumps.
This is seen at Metroplex Park in Tolworth, which has achieved an EPC A+ rating. All of the units are net zero carbon for regulated energy which means that on average the energy needs for running the building are met by rooftop solar panels.
It is also important to consider how a development acknowledges sustainable transport trends. For example, the rise in electric vehicles (EVs) use amongst employees and fleets will affect all businesses, driving the need for EV charging infrastructure.
Increasingly, developers are now considering the material resources that go into constructing buildings, for example calculating and seeking to reduce the embodied carbon emissions associated with their manufacture.
Thinking socially with ESG
To support the ‘social’ pillar of ESG, there is an increasing focus on improving internal working environments and features that promote the well-being of occupants. An example is thermal and visual comfort and daylight optimisation.
The provision of outdoor spaces is also becoming more common. These not only provide well-being benefits for occupants but also provide opportunities to enhance on-site biodiversity and community benefit.
However, finding sufficient and suitable space can be a challenge, especially on tight sites within urban fringes. Where there is a high ecological baseline value, achieving a 10 per cent gain on the site can be a significant challenge and developers may need to look to use biodiversity offsets.
During the construction phase, developers can provide support which can have a lasting community impact such as providing skills and training opportunities to the local workforce.
The wider impact of the whole supply chain of a new development is an important consideration, covering issues such as ethical and responsible procurement.
A strong future for ESG
ESG is a moving area as regulations, standards, technologies and needs of different stakeholders evolve, and the market shifts to accommodate them.
Within urban logistics, this is driving more ESG into developments, although challenges remain, not least the need to build in ESG considerations in an economically viable way.
Chancerygate offers urban logistics units freehold or leasehold in strategic locations across the UK and will soon also do so in Spain and Portugal. To view our latest developments, click here. To learn more about our asset management work, click here.
Development director Matthew Young explains how the scheme’s design and construction maximises its ESG (environmental, social and governance) credentials.
Targeting high ESG metrics
ESG represents a growing priority for the built environment and the urban logistics sector. As such, developers need to consider how a scheme can become an economic asset to the locality in a more responsible, sustainable way.
One of the most recognisable ESG markers is a scheme’s BREEAM accreditation. BREEAM is an independent assessment which rates the sustainability of buildings during both its construction and operation and is regularly updated with the latest technologies and best practice.
This holistic assessment includes reviewing energy and water use, internal environment quality, health and wellbeing measures, pollution, transport, materials, waste and ecology.
Metroplex Park in Tolworth has achieved an Excellent BREEAM rating meaning the development has met high standards across the range of assessment areas.
Addressing a scheme’s carbon footprint
The built environment currently accounts for nearly 40 per cent of global emissions. So a considerable ESG focus area is considering energy efficiency measures for a development to mitigate its carbon footprint.
Emissions can be addressed at the infancy stages of a development. During the construction phase, we calculate the materials’ embodied emissions and the energy utilised throughout the build.
This allows us to fully understand our development’s carbon footprint so potential alternatives, such as material choice, procurement and sourcing of materials, can be considered.
At Chancerygate, we continually review our design and construction processes to integrate low carbon solutions for all our developments and assets.
Addressing carbon emissions is also important for complying with MEES regulations, which presently require commercial properties to meet an EPC E rating. By 2027, properties will need to be at least a C and a B by 2030.
For Metroplex Park, we have achieved an EPC A+ rating for energy efficiency on all units. An EPC A+ target means the scheme has obtained the highest possible rating, significantly ahead of MEES legislation.
To achieve this rating, the development is built using high-quality insulating materials, has controlled air tightness to reduce air leakage and integrates energy efficient equipment. Air source heat pumps and solar panels are also used to generate operational energy for the units.
As such, the scheme has achieved as a minimum a 102 per cent reduction in CO2 emissions over Part L of the Building Regulations (2013) and is also net zero carbon for regulated energy. The development’s internal water usage rates are no greater than 105 litres per person per day.
Addressing carbon emissions also significantly benefits occupiers. It can reduce running costs, such as energy bills, and provide occupiers with more certainty and control around operational expenditure.
For example, a unit which was built in the 1990s and has undergone no refurbishment would cost around 15 times more to run when compared to one of Chancerygate’s new-build units. In addition, a unit which was built in 2009 would cost more than five times the amount to run. This demonstrates the evolution and importance of sustainable development practices within the property sector.
Acknowledging sustainable transport trends
For a development to consider fully its ESG credentials, it must be equipped to meet wider sustainability trends. The growing shift towards electric vehicles (EVs) is a key example of this.
The Department for Transport’s Zero Emissions Mandate requires 70 per cent of new vans sold in Great Britain to be zero emission by 2030, increasing to 100 per cent by 2035. This will significantly increase demand for EV charging infrastructure at developments.
Metroplex Park has been designed with nine dual active charging points and ducting is in place to allow these to be installed at all of the other parking spaces.
Other ‘green’ forms of transport also need to be acknowledged. At Metroplex Park 10 external bike shelters with additional facilities inside the units have been installed to encourage cycling.
Supporting health, wellbeing and biodiversity
Metroplex Park meets high standards for the health and wellbeing of tenants, which is another important ESG credential, covering visual and thermal comfort and indoor air quality.
The design includes more than 70 new trees, alongside an amenity area for tenants with seating and native species planting.
This represents a biodiversity net gain for the development and an urban greening enhancement for the area, which is in contrast to the site’s previous use as open storage and car parking facility.
Working with the local community
Developing Metroplex Park presented an opportunity to support the local community, which is a key element of any ESG credentials. We achieved this by providing charitable donations and work experience to local students.
We donated funds to Dysart School, which is less than a mile from Metroplex Park, to go towards two new ULEZ-compliant minibuses. Dysart School provides for pupils with a broad range of severe and complex learning disabilities.
Two students studying at nearby Kingston University also gained direct experience of a construction site for the first time, thanks to the Chancerygate Foundation.
The Foundation supports students from British African and Caribbean heritage, a significantly underrepresented demographic in the property sector, to access and thrive in a career in property.
An ESG-centric development
Developing urban logistics with strong ESG will ensure the sector fulfils its economic role, but in a more sustainable, responsible way.
This is a key priority for Chancerygate. Each development we undertake aims to achieve the highest standards and we continually strive to push the boundaries and our ESG credentials.
Metroplex Park exemplifies this and demonstrates how we deliver responsible schemes which benefit the environment, occupiers and the local community.
To find out more about our approach to ESG at Metroplex Park, call Matthew Young on DL: 020 7657 1886, M: 07853 085513 or E: myoung@chancerygate.com.
Here, she examines the importance of net zero, Chancerygate’s current activity and the key challenges on the road ahead:
Why is net zero carbon on the property sector’s radar?
The built environment is a significant contributor to carbon emissions, accounting for nearly 40 per cent of global emissions. One of the most pressing topics facing the property sector is navigating a pathway to reduce these emissions and achieve net zero.
Climate change has a long term societal and environmental impact, and our efforts to reduce emissions now will help address wider future issues. However, last December’s COP28 conference highlighted that we are not on track.
Within urban logistics, the drive towards net zero comes primarily from investors. Increasing disclosure and financial transparency requirements covering the UK and EU markets are increasing the focus on buildings’ ESG credentials. In addition, asset managers are starting to set their own net zero targets, and there are more disclosure requirements in the pipeline.
Whilst corporate tenants already consider sustainability when making rental decisions, similar priorities amongst SME occupiers are not as widespread.
Consequently, our focus at Chancerygate is on properties that are energy efficient for occupiers, delivering them cost savings.
Compared to one of our newly built units, an equivalent unit, built in the 1990s, that had not undergone any refurbishment would cost over 15 times more to run and a unit dating from 2009 would cost over 5 times more.
This focus on reducing energy use and carbon emissions also helps to preserve the value of the asset and means we are ready to meet the needs of future occupiers and investors which are drawn to sustainable properties.
How we are addressing carbon emissions with…
Our developments
Carbon emissions come in two forms: operational emissions, which is the energy needed to heat, cool and power the building, and embodied emissions which come from the materials and energy utilised in the construction process.
To reduce operational carbon emissions, our standard is to first make the units as energy efficient as possible. We do this by using high-quality insulative materials, controlling air tightness to reduce air leakage and providing natural daylight. The use of air source heat pumps means that there is no fossil fuel needed to power the building.
This is carried out alongside providing solar panels as a source of renewable energy.
All of our units target EPC A ratings for energy efficiency. For our new developments, we are starting to calculate the future energy needs for both the building and the future tenants and to design our units to provide sufficient solar panels to meet all those needs where we can. This will take our buildings to EPC A+ and beyond to net zero in operation.
With embodied carbon, we are looking closely at the materials that go into construction to measure and understand their carbon footprint and consider alternatives that might reduce carbon emissions.
For our current funds, our approach is to take stock which has poor ESG credentials and to retrofit low carbon solutions. Presently, the MEES regulations require commercial properties to meet an EPC E rating. By 2027, properties will need to be at least a C and a B by 2030.
We target achieving at least an EPC B rating when we refurbish assets, futureproofing them and helping occupiers by allowing significantly better energy efficiency.
As we bring newer stock into management, the focus will shift more towards monitoring performance and engaging with tenants to improve energy efficiency.
Navigating key challenges on the road to net zero
Targeting net zero requires a significant amount of effort to stay ahead of emerging and evolving challenges.
Several different definitions for net zero carbon buildings exist, and guidance is being updated continually, for example, the net zero standard for buildings which is coming out this year. It’s important to stay up to date and to be clear on what is being delivered to avoid greenwashing risks.
In tandem, technologies are also evolving such as solutions for the provision, storage and management of energy.
In the current economic climate, and with rental values not yet fully reflecting sustainability credentials, there is also the challenge of making the business case for investing in net zero. This applies across both the specification of new developments and in the refurbishment of managed assets.
With managed assets, there is an added challenge of gathering data to understand a building’s operational sustainability.
Data is needed to provide performance visibility and unlock the insights needed to tackle carbon emissions for both owners and tenants. This is particularly challenging in the multi-let use class where there can be challenges in engaging meaningfully with tenants.
A clear opportunity for ESG in urban logistics
We anticipate both occupiers and investors increasingly prioritising sustainability, increasing the pull towards net zero.
Chancerygate’s focus on developments and assets targeting net zero needs to balance economic viability alongside our sustainability ambitions.
Prioritising how to achieve net zero on an economically viable basis now will ensure we stay ahead of the curve rather than await, and address retrospectively, significant market shifts around sustainability.
Chancerygate offers urban logistics units freehold or leasehold in strategic locations across the UK and will soon also do so in Spain and Portugal. To view our latest developments, click here. To learn more about our asset management work, click here.
Although most of our developments focus on purely providing urban logistics accommodation in strategic locations, there are some that comprise multiple uses.
Our most recent development of this type is the £30m, 200,000 sq ft Bourges View in Peterborough. In addition to the 18 trade counter and warehousing units on the site there are Wendy’s, Costa Coffee and Taco Bell drive throughs as well as a Lok’n Store self-storage facility.
Similar Chancerygate developments include Gateway 44 in Carlisle, which features a Costa Coffee drive through and retail outlets, and Cranes Business Centre in Ipswich which also has drive through food outlets and retailers in close proximity.
At Chancerygate, it is our mission to not only seek value in our developments, but also ensure they are long-term economic assets.
These types of multi-use development provide occupiers, their employees and visitors to the sites with increased levels of convenience which, in turn, enhances the long-term economic value of the asset.
Urban logistics demands convenience
The ever increasing rise of ecommerce, consumer expectations for fast service and many businesses’ needs for a ‘just in case’ supply chain all drive the demand for last-mile urban logistics accommodation.
That means these types of development need to be located close to established and growing population hubs that are well served by readily available transport infrastructure.
It also means they are ideal for a blend of business genres across last mile logistics, trade and retail uses as they are in easily accessible locations which generate increased footfall and multiple consumer visits.
For example, Bourges View has a daily traffic count of more than 26,500 vehicles, is close to the city centre and adjacent to the main retail warehousing hub in Peterborough.
All of this combined ensures a greater likelihood of commercial success for occupiers and unlocks value in a scheme.
Employee benefits of convenience
A major advantage for employers who occupy multi-use developments are the benefits that they deliver to their employees who work there.
The developments are generally accessible by various modes of transport due to their strategic locations. This puts schemes in easy reach of a wider available labour pool and they provide a greater range of amenities for employees creating a more enriched working environment.
In our experience, all these factors combined can help with staff recruitment and retention in highly competitive labour markets.
Rise of the drive through food and drink outlets
Typically, drive throughs occupy 1,800 to 2,500 sq ft across 0.6-acres so they can be planned as part of the wider development without taking up large swathes of space.
Drive through food outlets are not a new concept in the UK, there are more than 2,000 across the country with their number growing 41 per cent between 2015 and 2020. Current demand is very strong with a number of new entrants keen to provide competition to the more established operators.
The Wendy’s at the Bourges View development is the US burger chain’s first ever purpose built drive through in the UK and sits alongside a Costa Coffee – a long established brand.
Due to their strategic and accessible locations, it is also not unusual to see discount retailers such as Aldi and Lidl locate close to or even forming part of urban logistics developments.
The only constant is convenience
Urban logistics blended with convenience retail or food and beverage is highly desirable and enhances the marketability of schemes.
By delivering alternate convenience uses, developments will endure and prosper because they provide the businesses and communities they serve with points of difference and greater variety and accessibility.
You can learn more about Chancerygate’s development sites across the UK here. For more information on how we deliver convenient urban logistics, get in touch with George Dickens on email: gdickens@chancerygate.com or telephone: 07767 254 234.
Last year proved to be one of adjustment within the UK urban logistics property sector following the significant downturn which began in the second quarter of 2022.
However, as we enter 2024, we feel the market has corrected and we have conviction the new year will provide good opportunities for fresh investment.
Our confidence is evidenced by our acquisition of five sites in the second half of last year. Located in Horsham, Newmarket, Manchester, Birmingham and Milton Keynes, these sites will deliver 700,000 sq ft of Grade A urban logistics space with a gross development value of £180m.
Always of interest
Interest rates rose above consensus (and our) expectations in 2023 increasing to 5.25 per cent. The effects of this are now being seen with inflation coming under control but GDP growth anaemic.
We expect interest rates to fall from the second half of 2024. Swap rates provide a clear indicator that the market has more confidence that interest rates are on a downward trajectory.
Once interest rates do start to fall, we expect appetite for UK urban logistics property to increase quickly and positively.
Occupier appetite
The triumvirate of challenges we predicted at the start of last year that occupiers would face in terms of increasing rents, rates and inflation in 2023 were proven to be true.
We saw a significant uptick in viewings across our schemes in the final quarter of 2023 but it is undoubtedly taking potential tenants and buyers longer to make decisions to commit to new accommodation. Our view is that when interest rates fall and inflation is explicitly seen to be under control they will have the confidence to commit to taking new space.
Time for change?
The big question mark over 2024 is the outcome of the general election. Whilst the polls persistently predict a clear victory for Labour, this is not a given by any means.
Businesses operating within the urban logistics property sector can take much more confidence in today’s Labour leadership than previous iterations.
For example, on The Rest is Politics Podcast, Shadow Deputy Prime Minister, Angela Rayner, said Labour would focus on enhancing productivity and creating GDP growth to stimulate the economy, commenting that tax rises were not feasible given current levels. The agenda seems very pro-business.
It is also worth noting the United States presidential election will take place on November 5 this year. There will no doubt be plenty of twists and turns before that date but, whatever the outcome, global markets will be impacted.
Planning for success
Labour has indicated that reforming the planning system will be a manifesto pledge. This would, of course, be welcomed as the system is not currently fit for purpose. It will, though, be important that reform is structured, not just from the perspective of the need for housing, but also looks at the wider economy.
According to a report by the UK’s National Infrastructure Commission, the UK logistics sector moves around 1.6 billion tonnes of goods a year. The report states that “both government and local authorities often have little understanding of why and how to plan for freight, leaving the needs of the freight system far down the priority list”.
The Commission refers to this as “freight blindness”. We think it is high time a light is shone on the matter so that urban logistics provision is prioritised from the outset due to the ever increasing demand from the populaces of towns and cities for goods and services.
Europe calling
This time last year, we announced that we would accelerate our growth within Europe. At the start of 2024, we are in the process of appointing country heads for Ireland, Spain and Portugal and we have prominent last mile logistics sites secured in all regions.
We are very pleased with the progress we have made in the past 12 months and are excited by the opportunities we have found in Europe. The supply/demand imbalance for prime Grade A, sustainable urban logistics is palpable across all jurisdictions.
Our fundamental belief that we have a great opportunity to become important players in European multi-let urban logistics property development remains unchanged. This year therefore looks set to be another important one in our expansion on the continent.
Active ambition
The most important way we can ensure we act entrepreneurially, decisively and at pace is by making certain our most important asset – our team – is best-in-class.
To that end, we were delighted last year to appoint our head of development, Alastair King, and general counsel, Eva Holden, to our board of directors in June.
Both of them are actively shaping the strategic direction of our business and helping implement our ambitious UK and European growth plans.
In addition, we have recruited Simon Cowley as head of investment and asset management along with our new chief financial officer, Michael Treliving. They joined at the end of last year and start of this one respectively, and we are excited by the ideas and energy they are already contributing to Chancerygate.
As it unfolds, this next 12 months will no doubt have its share of challenges and opportunities. However, we believe Chancerygate is best placed to take advantage of each situation that presents itself to move our business forward in both the UK and Europe in 2024.
Chancerygate offers urban logistics units freehold or leasehold in strategic locations across the UK, and will soon also do so in Spain and Portugal. To view our latest developments, click here.