Tesco announces multi-million pound logistics centre at London Gateway
Tesco has announced a major investment in a new state-of-the-art distribution centre at DP World London Gateway, which it expects to open in 2029.
By Liza Helps, Property Editor, Logistics Matters
THE NEW multi million pound dry goods distribution centre, will be equipped with the latest technology, and is expected to be one of the most sustainable buildings in the UK targeting BREEAM Outstanding certification.
Tesco is collaborating with Witron, an experienced logistics partner with a strong legacy of retail partnerships, to bolster its network capacity at the site.
Tesco UK Distribution & Fulfilment Director Andrew Woolfenden said: “Our distribution network is vital for ensuring customers receive products at the right place, time and condition. As demand grows across our store network, we’re excited to partner with Witron and DP World to develop a distribution centre that leverages the latest technology, enhancing our supply chain and supporting our decarbonisation goals. By locating at London Gateway, we can also take full advantage of the seaport and rail infrastructure.”
The 9.25 million ft2 London Gateway Logistics Park is part of the Thames Freeport and as such the new Tesco DC could benefit from a number of benefits which include 100% business rates relief, 0% Employer National Insurance contributions for 3 years on new jobs, 10% per annum enhanced structures & buildings allowance as well as 0% Stamp Duty Land Tax. These incentives have been extended to 2031.
In addition to being within the freeport zone , The logistics park has its own Local Development Order. This is a type of planning permission that offers flexibility for multiple projects and changes of use, rather than being limited to a specific project or change, basically as long as the schemes put forward comply with the guidance outlined in the Order, they can be granted approval within 28 days.
Thurrock Council granted the latest Local development Order (LDO2) in March this year. LDO2 will allow up to 7,898,299.13 ft2 of commercial floorspace at London Gateway Logistics Park. Of this, 4,438,240.13 ft2 is already completed or committed under LDO1 and LDO1.5. This means there is 3,363,183.81 ft2 remaining to be consented.
Of the build to suit plots available the largest being marketed, known as LG1301, could accommodate a 1.301 million ft2 facility, with up to 38m eaves height. It would have access to 4 MvA of 100% renewable power and be 100% PV ready with an enhanced floor loading to 65/kn/m2 with 55m yards built carbon net zero to BREEAM Outstanding and EPC A+ rating.
Joint agents at London Gateway are Savills and Glenny.
