Leading owner, developer and investor of logistics property, Prologis UK, has let its prime location South East logistics unit, DC4 at Prologis Park Hemel Hempstead, to Food Service Logistics Limited (FSL) to support the servicing of their national contract with Starbucks.
A 15-year lease has been agreed on the 161,134 sq ft distribution centre, with refurbishment works currently underway and expected to be completed in June 2024. The works will bring the building in line with Prologis UK’s market leading standard, with EPC A rating targeted.
Alongside this, the refurbishment will focus on increasing and enhancing the offices, installing new LED and all-electric heating alongside a number of wellbeing features, including pockets of greenery, communal break out areas lined with additional seating, and paving to enhance the existing amenity space.
As part for the leasing terms, FSL has been provided with a Prologis Essentials allowance, to further upgrade the unit as they wish. The bespoke Essentials offering can include operational, energy and mobility enhancements.
Kevin Hopkins, CEO, at Food Service Logistics, said: “With our operations already well established in the South East logistics market, the decision to move into a perfectly located Prologis UK unit was unanimous. Looking ahead to completion later this summer, we have no doubt that the quality of the unit will exceed expectations, and we very much look forward to watching the renovation unfold.”
Gillian Scarth, Director, Capital Deployment and Leasing, at Prologis UK, said: “Welcoming new customers to our Parks is always a proud moment, and it is with great pleasure that we are announcing the letting of DC4 to FSL. Moreover, with the unit undergoing refurbishment, we are able to offer the customer a high quality product, equipped to service their needs, while avoiding embodied carbon that would occur during construction of a new warehouse.”
Already operating out of Hemel Hempstead, DC4 provided the opportunity for FSL to locally expand it operations to a new, right-sized unit. Strategically located in one of the South East’s primary logistics parks, FSL continues to benefit from access to key motorways, with the M1 J8 less than two miles away: ideal for servicing London. Remaining in the company of household names including Vitabiotics and Hermes, the caliber of customers on site is testament to the strength of Prologis UK’s Hemel Hempstead portfolio.
The lease at Hemel Hempstead follows the recently announced speculative construction of an additional five new distribution units currently available to pre-let; growing the park by over 280,000 sq ft and demonstrating the strong market demand for distribution facilities in the location.
CBRE acted for Prologis UK. Knight Frank acted for FSL.