EXCLUSIVE: Council planners ring-fence site for logistics use only

By Liza Helps, Property Editor, Logistics Matters

THE CONDITION has been put forward in committee papers appertaining to an application  to increase the size  of an already  consented site by some 161,500 ft2 from 322,917 ft2 to 484,375 ft2.

The 31.2 acre grey belt site is located between the A41 and M1 near Bushey and while it secured outline planning in August 2024 for 322,917 ft2 of industrial and logistics space, it was originally looking seeking 484,375 ft2.

The Council reduced the amount of space stating that any more on the site would lead to ‘over-provision of logistics space for the area’.

However, since this time the applicant Nolan Brothers Properties has returned to plead its case once more for the full 484,375 ft2 of space disagreeing with  the South West Herts Economic Study 2024 which informed the Council that it had the recommended amount of industrial and logistics space.

The applicant maintains that there is a greater need for B8 logistics floor space in the borough than South West Herts Economic Study report estimates. In fact, it suggests in its own economic need briefing note put together by planning consultancy Lichfields that there is a shortfall of some 1 million ft2 plus in contrast to the Council’s own evidence base which suggests currently that the existing need has been met. Furthermore commercial agent DTRE has identified that there are 15 active requirements for larger-scale B8 units to serve the London and local markets.

The supply in Hertsmere comprises smaller units which cannot meet this demand, with existing/ committed units being utilised for other purposes for example with Sky Studios taking units at Panattoni Park and the Mercure Hotel site being sold to a data centre provider resulting in the loss of space for logistics use.

In their report to the planning committee Hertsmere planning officers have noted the changing nature of the market, in particular the increasing national demand for data centres, which also fall generally within the B8 use class, stating that this ‘may result in further losses of logistics sites to data centre uses, as is the case with the Mercure Hotel site’.

The committee report noted: “In order to retain a balanced approach to economic growth, there may be a need to retain and intensify current logistics site options which could lose traction to data centre development with (initially) higher land values.

“Analysis from Savills has shown that since the start of 2024 the majority of over 415 acres of land deals to data centre operators were for sites previously promoted for industrial and logistics use. Therefore, the market may end up limiting the oversupply of industrial and logistics floor space.”

In that context the planning officers have recommended the approval of the additional space but have attached a condition to ensure that if outline planning permission is approved, the site will come ‘forward for logistics and not a data centre use’.

Timetables attached to the plans indicate that construction on the “phased development” could begin in 2025 and part of the site could be in use from early 2026.

The application will be considered by Hertsmere Council planning committee meeting on Thursday (April 24).