DHL to speculatively develop warehouse for open market
DHL is set to speculatively develop a circa.500,000 ft2 warehouse in the East Midlands for lease to a third party.
By Liza Helps, Property Editor, Logistics Matters
THE WAREHOUSE is part of a larger development that could provide up to 1.8 million ft2 on the former Corus/Tata Steelworks site in Corby known as Westworks.
Speaking to DHL Real Estate Solutions head of real estate solutions Gareth Osborn, Logistics Matters asked what the thinking behind the move was all about. Osborn said: “DHL has developed campus schemes in North America for years and in the UK has owned then sold properties via sale and leaseback, this is a natural progression.”
In 2015 DHL secured a sale and leaseback of its 272,000 ft2 depot in Bawtry, Doncaster to an overseas REIT taking a 15-year lease on the property and securing some £17 million to reinvest in the business.
Osborn noted that DHL would not be holding onto the development going forward acting rather as a developer trader than a developer investor such as SEGRO or Tritax.
He said: “This is all part of an overall strategy where we can have more control of what we develop for ourselves as well as being able to monetise surplus space and reinvest within the overall business.”
In addition, he said he expected DHL would occupy up to 1 million ft2 at the 1.8 million ft2 Westworks scheme either directly or on behalf of clients. The surplus space which includes the circa.491,000 ft2 speculative warehouse known as Unit 3 would be leased/sold to a third party with or without a DHL contract in place.
DHL secured the 93 acre site with outline planning consent in 2024 from Warmflame Developments. Earlier this year it submitted a Section 73 application to amend the consented Development, to increase the maximum consented building height parameters by 10m from 32m to 42m ‘to meet modern occupier requirements for high-bay industrial and typical demands for floorplates of this scale’. The new height parameters said Osborn are ‘as rare as hens teeth’ and runs over three quarters of the site giving DHL increased flexibility going forward.
According to the marketing information on the Westworks site Unit 3 will be a cross docked facility. It will total 491,754 ft2 with 21m eaves as well as 70 dock (54 dock and 16 Euro dock) and eight level access doors and served by two 50m yards with 360 degree circulation and parking for 104 HGVs. It will be built to target BREEAM Excellent and an EPC A rating.
In its design and access statement the building looks to have ancillary office accommodation, with a main two-storey outboard office to the front (south-east) and two hub offices located centrally in the service yard on either side of the building.
Subject to planning DHL is expecting to start on site in January 2026 with early fit out available form June and practical completion for 2027.
A further 291,827 ft2 property is also available according to the marketing brochure. Joint agents are Acre Capital Real Estate and DTRE.
