Kier Property has announced the launch of ‘Logistics City’, its new brand for the development of large industrial units of up to 250,000sq ft.
Primarily aimed at ‘last mile logistics’, Logistics City complements Kier Property’s highly successful Trade City brand, which has developed nearly one million square feet of trade counter and light industrial warehousing space across the UK in the past three years, with a further one million plus square feet in the pipeline.
The first major Logistics City scheme will be developed in West Thurrock – where Kier Property has purchased 10 acres from Hanson at Motherwell Way for £8m. Work will start on site in December 2015 to deliver four large units (totalling 165,000sq ft part pre-let, part spec). There will also be a 76,000sq ft Trade City scheme on the site.
Leigh Thomas, who was promoted to the role of Kier Property managing director following the elevation of Nigel Turner to the Kier Group Board earlier this year, explained why the time is right for the company to launch the new Logistics City brand: “This is a strategic move to expand our portfolio in the larger industrial arena, where we have identified a growth pattern. The team is keen to look at sites ranging from 5 to 15 acres in high population centres in all key transport locations across the UK, where there is demand and limited space.”
In addition to West Thurrock, Kier Property has a strong portfolio of current logistics sites in Reading, Frimley, Andover and Normanton, which will all be taken forward under the Logistics City brand.
Phil Sutton, Kier Property director responsible for future developments, commented: “These five sites will deliver nearly 600,000sq ft of prime logistics space. When you add this to our current industrial stock, it demonstrates our ambition to double the size of our development portfolio in line with the Kier Group Vision 2020.”
Kier Property launched Logistics City at their annual Trade City BBQ at the Royal Aeronautical Society on Hamilton Place, attended by over 100 professionals from across the industrial market, including representatives from DTZ, Savills, BNP Paribas, Jones Lang LaSalle and Lambert Smith Hampton.
Building on Kier’s continued success in the sector, Leigh Thomas outlined the developer’s plans for expansion at the event. These include leveraging Kier Group cash to enhance growth (rising from £100m to £200m), undertaking more JVs to increase market share, increasing development stock, securing new funding routes and forging opportunities in key target areas where there is limited space but high demand.
