Tony Watkins, Head of Development London & South East, recently had the opportunity to sit down with Thinking Business Magazine to give an insight into why Panattoni is investing more than £180m in Kent.

Despite excellent motorway connections to the Channel ports and M25, Kent has a longstanding un-met need for high quality logistics and warehousing space. However, that’s changing, thanks in part to Panattoni’s arrival in the county.

The company is transforming the 90-acre former Aylesford Newsprint site to create high-quality logistics and distribution space, employing more than 3,000 people. When fully completed in Q1 2024, the park will be the company’s largest UK investment, and part of its commitment to supporting its global clients and strengthening local employment. The first unit at the park will be operational from this month and be in full employment use ready for the Christmas peak.

Former Aylesford Newsprint Site

As a site, Aylesford offers the perfect location with motorway connections, existing access to the power network and a size to meet the exacting demands of the distribution and warehousing industry, without requiring development on greenfield land.

The prospect of new jobs was welcomed by local residents, and its economic significance helped ensure the plans got the green light from Tonbridge and Malling Borough Council, and support from Kent County Council and Locate in Kent.

Progress at Panattoni Park Aylesford

Demand led development

Having marketed the site to the global logistics industry, Panattoni’s confidence was quickly rewarded with significant levels of demand from industry leaders wanting to secure operations in Kent.

Four occupiers have already been secured for the site near Junction 4 of the M20, including DHL, Fowler Welch, Evri (formerly Hermes) and most recently Marley Tiles, with other deals close to being finalised.

When it comes to demonstrating confidence, nothing speaks louder in the property industry than investing in speculative development. It’s a case of “If we build it, they will come” and that is exactly what Panattoni is doing here in Kent. The company is shortly to bring forward plans to speculatively create 750,000 sq ft of high-quality flexible warehousing space on the site. The aim is for the building to be operational, subject to planning, by the end of Q1, 2024.

CGI at Panattoni Park Aylesford

Strengthening local supply chains

After being introduced by Tonbridge and Malling Borough Council, Panattoni signed up Royal British Legion Industries (RBLI) to supply the permanent estate signage and hoardings for the whole development site. RBLI’s social enterprise Britain’s Bravest Manufacturing Company employs more than 100 people – 70% of whom are veterans and people with disabilities. The partnership is one of those occasions when Panattoni has been able to source high quality, competitively priced products and also support the nation’s veterans with employment, training and accommodation.

Leading by example

The company is also delivering on its environmental commitments by exceeding its requirement to deliver a 10 per cent Biodiversity Net Gain onsite at Aylesford. It is also working closely with Kent Wildlife Trust to support a number of local environmental projects, including work on Ditton Stream.

As part of its commitment to sustainable development, Panattoni will use low or Zero Carbon technologies to reduce energy demand and CO2 emissions at Aylesford. Solar panels, air source heat pumps and LED lighting will reduce energy consumption and associated CO2 emissions by at least 10 per cent. No gas will be used in its operation, and EV charging points for cars and bikes are being integrated. The whole park will be certified to the national environmental standards, with a BREEAM rating of ‘Excellent’ and Energy Performance Certificate of ‘A’.

Wider benefits

As part of its Section 106 agreement, Panattoni is also funding the construction of a £7m road which will link Bellingham Way to Station Road to improve the local infrastructure and at the same time restrict HGV access to Aylesford village. When construction of the new link road is finished, it will formally become part of KCC’s road network.

After listening to the local community and recognising the need to enhance local transport provision, Panattoni will fund an upgrade to the local bus service for five years, and contribute towards a cycle hire scheme. More than 4km of new cycle paths and footpaths will be put in place, as well as improvements to the New Hythe and Aylesford railway stations.

Continued investment

On an 8-acre site at Wrotham, Panattoni is proposing to develop a 58,000 sq ft distribution centre, creating 250 jobs and retaining longstanding employer Marley Tiles in the borough. Located on the A20/London Road, the site offers easy access to the M26 and M20, and would be home to a high-quality facility for leading parcel delivery company DPD to support online and high street retailers.

The Wrotham proposals offer a win-win for Kent, with Marley Tiles being able to relocate to Panattoni Park Aylesford and the site freed up for greater levels of employment and the investment in a high-quality distribution centre.

Proposed development at Wrotham

Award-winning

Panattoni has been crowned the Developer of the Year at the Insider’s South East Property Awards 2022. The company has also announced proposals for delivering development in Burgess Hill in West Sussex, plus a 200,000 sq ft planning application for a new unit in Crawley, with a new three-unit net zero development in Basingstoke currently under construction.

Long-term perspective

With it’s commitment to being a good neighbour and recognising that the industry it serves can impact on the local community will see Panattoni continue to manage the day-to-day operation of the Aylesford park going forward, and retaining it within its portfolio.

As for the future, with the ongoing growth in online sales, the outlook for Panattoni who count many global brands and household names among their customers looks positive – with Kent a beneficiary with Panattoni always open to having a conversation about other sites.