LONDON
Oxford Properties Group (“Oxford”), a leading global real estate investor, asset manager and developer, and Logistics Capital Partners (“LCP”), a best-in-class developer and asset manager of logistics real estate across Europe, have secured planning permission to develop c. 340,000 sq ft of technologically advanced and environmentally sustainable logistics space on a 15-acre brownfield site adjacent to Heathrow Airport. The much-needed new space will be delivered across two units of 200,000 sq ft and 140,000 sq ft, respectively.
The project has been designed to high sustainability and quality standards, including net zero carbon in construction and operation as well as 15-metre eaves, 50-metre yards and dedicated gatehouses. With an energy rating of EPC A+, Oxford and LCP are also targeting BREEAM Excellent and WELL Gold Standard certification. Located next to Cranebank Natural Reserve, the scheme responds to the needs and wellbeing of modern customers by offering access to parks, water meadows and wildlife.
In addition to construction jobs provided during the demolition and construction phases, once operational between 500 and 1,000 new jobs will be created across diverse roles. The project will also provide local schools and young people with training and apprenticeship opportunities.
Oxford and LCP acquired the site, which is in a prime location immediately adjacent to London Heathrow Airport’s perimeter, in 2020 from British Airways which had been its owner occupier for over 50 years and latterly used it as a training facility.
There is an acute shortage of supply of high-quality logistics space in the well-established logistics hub around Heathrow due to its position as one of the world's busiest cargo airports and its excellent connectivity to Central London via M25, M4, A30, Piccadilly and Elizabeth lines.
High quality logistics remains one of Oxford’s key conviction sectors, due to its long-term sectoral tailwinds, robust occupier demand and continued rental growth. Present in the logistics sector in North America for almost two decades, Oxford has invested in European logistics since 2018 with exposure now spanning the UK, Germany, France, the Netherlands, Denmark and Spain. Oxford has built and invested in best-in-class logistics platforms across the globe to substantially increase its weighting to the sector, including through the acquisition of M7 Real Estate in 2021.
Since its launch in 2015, Logistics Capital Partners has developed 10,000,000 sq ft, and currently manages over €1.2bn of income producing logistics assets alongside a significant pipeline of development. Recognized for its strong reputation and professional track record for delivering market leading projects and transactions, LCP’s projects and offices span the UK, Italy, Netherlands, France, Belgium, Spain and Luxembourg.
Robin Everall, Head of Development at Oxford Properties said: “Logistics remains a key sector for us given its strong income profile and robust occupier demand as a result of continued structural tailwinds - urbanisation, growth of e-commerce and a focus on onshoring and the strengthening of supply chains as a result of the long-term impact of the pandemic, as well as the broader political and economic macro environment.
“This planning permission allows us to bring forward with LCP much needed environmentally sustainable logistics space in a prime supply constrained location, that we have designed to help occupiers reduce their carbon footprint and benefit from technologically advanced features that will improve their operations.”
John Pagdin, UK Head at LCP said: “As a team we are extremely excited about developing this scheme alongside Oxford Properties. It represents the introduction of a much-needed high quality asset to the Heathrow & West London markets setting new standards of sustainability and occupational efficiency.
“We have already had positive discussions with active occupiers and look forward to progressing these as the scheme develops.”