Heathrow logistics hub given green light

By Liza Helps Property Editor Logistics Matters

THE PROJECT located on site of the former 440,000 ft2 British Airways Cranebank Training Centre, will see the development of two units of 200,000 ft2 and 140,000 ft2 built to target BREEAM Excellent, EPC A + and WELL Gold standard certification ratings.

Designed to high sustainability and quality standards, including net zero carbon in construction and operation the properties will benefit from 15m eaves, 50m yards and dedicated gatehouses. 

The site, acquired in 2020, was the first industrial and logistics property bought direct in Europe by the Canadian company Oxford Properties Group - it had previously invested some £200 million in a GLP fund to build out the Gazeley landbank in 2018. The deal was done in conjunction with Logistics Capital Partners – also debuting in the UK market at the time.

Oxford Properties Group has since invested heavily in European  industrla and logistcs projects including the acquisition in 2021 of M7 Real Estate which provided the investor with a specialist platform through which it could deploy capital into Europe and into multi-let industrial and urban logistics in particular.

In the same year it formed a £1 billion joint venture with LCP to develop out the 736-acre West Midlands Interchange near Birmingham which can accommodate up to 8 million ft2 of rail connected  warehousing.

The Heathrow project  is located next to Cranebank Natural Reserve, allowing the scheme to respond to the needs and wellbeing of modern customers by offering access to parks, water meadows and wildlife.

In addition to construction jobs provided during the demolition and construction phases, once operational between 500 and 1,000 new jobs will be created across diverse roles. The project will also provide local schools and young people with training and apprenticeship opportunities.

Oxford Properties Head of Development Robin Everall, said: “Logistics remains a key sector for us given its strong income profile and robust occupier demand as a result of continued structural tailwinds - urbanisation, growth of e-commerce and a focus on onshoring and the strengthening of supply chains as a result of the long-term impact of the pandemic, as well as the broader political and economic macro environment.

“This planning permission allows us to bring forward with LCP much needed environmentally sustainable logistics space in a prime supply constrained location, that we have designed to help occupiers reduce their carbon footprint and benefit from technologically advanced features that will improve their operations.”