Panattoni starts 644,000 sq ft net zero carbon logistics development in Sittingbourne

Panattoni starts 644,000 sq ft net zero carbon logistics development in Sittingbourne

Panattoni, the largest logistics real estate developer in the UK and Europe, has begun developing a 644,000 sq ft net zero carbon logistics park in Sittingbourne. 

The development, called Panattoni Park Sittingbourne, comprises two units of 440,000 sq ft (S440) and 205,000 sq ft (S205). Panattoni acquired the 26-acre site in the fourth quarter of 2023 and completion is expected in the first quarter of 2025.

Panattoni Park Sittingbourne is targeting net zero carbon development with an expected BREEAM sustainability rating of ‘Excellent’ and an EPC rating of ‘A’. Both units are to be developed with enhanced sustainability measures within the base specification, including the installation of roof-mounted photovoltaic panelling and electric vehicle charging points. The site has 5MVa of power available, with a further 1.35MVa of power generated from the use of the solar panelling totalling 6.35MVa of power across the park.

Panattoni Park Sittingbourne is strategically positioned between London and Dover, four miles north of junction 5 of the M2. The development provides convenient access to major national and international transport routes, with the port of Dover less than an hour away and easy connectivity to the M2, M20 and M25 motorways.

Alex Mitchell, Development Manager at Panattoni, said: “Panattoni Park Sittingbourne provides occupiers with high-quality, modern logistics space with significantly enhanced sustainability credentials. We are pleased to be under construction having purchased the site in September 2023 and look forward to delivering the units in the first quarter of 2025.

“The development of the site highlights our continued strategy to speculatively develop within under supply markets , capturing the sustained level of occupier demand for logistics assets with seamless connectivity to local, national and international distribution routes”.

Agents at Panattoni Park Sittingbourne are Avison Young, Savills and CBRE.

VIDEO – Prime Minister joins logistics developer Panattoni to break ground on largest commercial site in the South of England.

VIDEO - Prime Minister joins logistics developer Panattoni to break ground on largest commercial site in the South of England.

Q+A: Nick Preston on building Panattoni’s investment management business

Q+A: Nick Preston on building Panattoni’s investment management business

What excited you about the opportunity to build an investment management business at Panattoni?

Panattoni has been partnering with investors on a deal-by-deal basis for many years so it is a natural progression to have in-house investment capabilities, with more capital under group control. There was no captive money prior to Panattoni Investment Management being established.

Partnering up Panattoni’s development business across Europe with the stability and the more cautious approach of institutional investors felt like a really interesting challenge for me.

There’s always this slight love-hate relationship between investors and developers – with the development side perceived as quite risky and many investors seen as wanting to avoid risk. So it’s about connecting the returns that developments can provide with a low-risk approach for those more risk-averse institutional investors.

Panattoni is carrying out a 77,000 sq m speculative development near Magdeburg in Germany

Things are progressing very well, even in the few months that I’ve been here. The rationale behind setting up the business was driven by investors saying: “We would like Panattoni to have a discretionary fund management platform we can invest with.” Fundamentally it’s about broadening the number and type of investors, who can invest alongside Panattoni, and grow the Panattoni development business across Europe.

What type of investors are you targeting?

I am targeting a range of investors who are not currently serviced by Panattoni –  whether it’s smaller investors, who might come into a pooled fund structure, or larger investors, who don’t have the deal execution capability or the portfolio management capability in-house. So they’re looking to outsource that into a discretionary, or sometimes non-discretionary, investment management service.

We are already in discussions with North American, European, Far Eastern and Australian investors. Some talks are in advanced stages.

So will you offer these investors a wide range of investment products?

Yes – from separate managed accounts to joint ventures and pooled fund structures. The logistics market remains well placed and investor demand is there. We have the ability to develop assets and then hold them long term on behalf of investors. So we’re able to bring together development and long-term, stabilised core strategies.

“We will be growing the business this year in terms of headcount and we’ve got a number of opportunities coming in. We’re hopeful that we will be up and running in due course this year”

We will be growing the business this year in terms of headcount and we’ve got a number of opportunities coming in. We’re hopeful that we will be up and running in due course this year.

Will you target acquisitions of both standing assets and developments?

Absolutely. We are keeping our options open. The reality is that we expect a majority of the acquisitions to come through the Panattoni development pipeline. It’s very significant, with exposure to all the major European markets and some minor markets as well.

Panattoni Park Arboga in Sweden Panattoni Park Arboga in Sweden

Access to product is one of the key selling points that we have through our investment management platform. And it’s meeting demand from investors whom we were not able to service appropriately before Panattoni Investment Management was established. They know that we operate in the best markets and build very high-quality, green assets. That’s what they want.

Which markets will you target?

I’m generally country-agnostic. However if you were to ask me today for a long-term investment strategy, I’d be focusing on the core markets, with supply-demand imbalance from the land perspective and strong tenant demand. But there are also more adventurous strategies. We’ll be looking at some of these other markets where the supply side is more relaxed but where you get higher returns, such as Hungary and Slovakia. That may well be more for a develop-and-sell strategy rather than a develop-and-hold strategy.

We’ll always favour the very deep and supply-constrained markets, such as Germany, the Netherlands, the UK – and also prime markets in France, Spain and Italy. And within any country there are better regions and less good regions. You look at the UK and say: “The UK is brilliant” but no one’s going to be investing in logistics in northern Scotland. It’s the same in Germany and it’s the same in the Netherlands. So it’s also about looking at the fundamentals of the asset, the demographics and the infrastructure.

But will you still offer country-specific strategies?

Absolutely. One of the benefits of the big platform is that in any of these core markets, we will be able to provide a solution. If we wanted to just do a Nordic strategy, our teams in Denmark and Sweden would be able to deliver that.

What do you make of the current state of the logistics market?

Those of us who have been around a little while understand that things take some time to stabilise after a correction. Inflation and interest rates are now settling, giving the market more certainty and stability, but it takes longer for valuations to reflect the longer-term, forward-looking views of investors.

However, I do feel we’re getting there. There’s more alignment in the market and more opportunities. Some vendors are more pragmatic than others. Having been talking to the development teams across Europe about land availability and pricing, there’s more acknowledgement by vendors of the big macroeconomic changes that have happened over the last two years, and hence more pragmatism in reflecting this in land prices.

The macro factors from the occupational side remain unchanged. Nearshoring is becoming a really big thing because of the geopolitical issues leading to supply chain insecurity. I was in Poland a couple of weeks ago and the Polish teams there are seeing a lot of Far Eastern manufacturers now moving their plants back to Europe from the Far East. This is driving demand, particularly in the eastern and southern fringes, because the labour costs are more appealing there. And it’s not just get the benefit of a large manufacturing site, it’s all of the spin-off businesses that are attracted alongside.

We haven’t talked about e-commerce as well but e-commerce growth will continue to be strong in Europe.

The other global, long-term trend is sustainability and greenfield developments. This, again, is prevalent all across Europe. It started in the Netherlands, Germany, Nordics, UK, and is spreading out through France, Spain, Italy, and further east into Poland, the Czech Republic, Hungary and Slovakia. The leaders of this – typically the Dutch and Germans – are seeing extremely tight or virtually no land supply or land release of green belt. I think within the next five years there will be an absolute prohibition on any greenfield development. It’s all shifting to brownfield. There’s going to be a lot of competition for that land – not just logistics, we’re talking housing, retail, agriculture.

The Southern European logistics markets have been performing very strongly. How much of a focus are they for you?

The Italian and Spanish markets are indeed very strong. In Spain, our teams are based in Madrid and Barcelona, but we’re also looking at opportunities in Valencia and Malaga. However, the fundamental drivers of the Spanish market are Madrid and Barcelona.

In Italy, we’ve got a team in Milan. The northern slice of Italy is one of the wealthiest areas in Europe per capita so we’re active there. Similarly, Rome has been a real growth market and we continue to see opportunities around there, led by occupier demand. Fundamentally, it’s all about the micro markets.

Panattoni starts 80,000 sq ft speculative logistics development at prime Heathrow site

Panattoni starts 80,000 sq ft speculative logistics development at prime Heathrow site

Panattoni, the largest logistics real estate developer in the UK and Europe, has begun speculatively developing Panattoni Poyle 80, a 80,000 sq ft last-mile logistics development in the sought-after Heathrow area, after purchasing the site in the first quarter of 2023.

Panattoni Poyle 80 is a net zero carbon development that will be built to a BREEAM sustainability rating of ‘Excellent’ and an EPC rating of ‘A’. Completion is expected in the third quarter of 2024.

Panattoni Poyle 80 is strategically located on Horton Road near junction 14 of the M25. Poyle is one of Greater London’s most established logistics locations, offering direct access to the M25 and close proximity to Heathrow Airport’s passenger and cargo terminals alongside convenient last-mile connectivity with Europe’s largest consumer market, London.

Panattoni Poyle 80 is one of the sites in the south east that Panattoni acquired in 2023 for a combined £350 million, all of which provide value-add development opportunities in core markets where Panattoni can drive rental growth.

Alex Mitchell, Development Manager, South East and London, at Panattoni, said: “We are pleased to start construction at Panattoni Poyle 80, a rare ultra-urban, last-mile opportunity with immediate access to the UK’s largest cargo terminal at Heathrow Airport.

“Early interest in the development demonstrates strong occupier demand for the highest quality logistics space in well-connected locations. We are looking forward to completing the development of Panattoni Poyle 80 later this year as we continue to execute our speculative development programme.”

Agents at Panattoni Poyle 80 are DTRE and ACRE Capital Real Estate.

Interview with Robert Dobrzycki – Forbes Poland

Interview with Robert Dobrzycki - Forbes Poland

Forbes: It’s extremely rare to take a job with a Western corporation and immediately become a shareholder. How did it happen that you became a partner with Carl Panattoni in its European business in your 20s?

Robert Dobrzycki, CEO and co-owner of Panattoni Europe and India: It started when, in 1999, in my fifth year of university, I quite by chance got a job in the finance department of the American industrial developer Menard Doswell & Co.

 

The company had a large Warsaw branch?

No, it was a small company, building a few warehouses each year, so it was quite easy to gain an overall knowledge of the development business. After six years of very intensive work, from practically the lowest position, the owner gave me the opportunity to manage the whole thing. However, the scale of the business was not growing, and I lacked some challenge despite being only 29 years old.

 

I guess that Carl Panattoni came across your path at that time.

Yes, he was at an industry conference in Prague and happened to be in Warsaw in passing. I was recommended to him as someone to talk to because I was “hungry” and looking for a challenge. The first meeting was quite relaxed. However, quickly began to reveal a lot of common views and outlook on business. I, after the first meeting, was already convinced that I wanted to work with him. I don’t know about him, but in the next two days – it was Thursday and Friday – we met two more times and at the end he said: “Okay, then let’s do business together.” And then he went back to the States. I was left all alone in the service office in Warsaw. It was a shock.

 

So you started from a completely blank sheet of paper.

Yes, completely from scratch, alone. Only that I already had some industry experience and I think I knew how to go about it, or so I thought. After three years I was already employing a team of 120 people.

 

The pace was impressive.

 I was 29 years old and wanted to push forward nonstop. At that time I was less preoccupied with questions about the ideal business structure. However, if I had started with today’s state of my knowledge and awareness I probably wouldn’t have done it at such a pace.  A more mature and aware person works in a much more sustainable way, but each approach has its pros and cons.

 

What were your first projects?

In the first year I did two projects for Coty Cosmetics of 16,000 sqm in Bielsko-Biala and with H&M in Poznan of 52,000 sqm,. At the time, it was the largest transaction in the history of Poland. In fact, we theoretically shouldn’t have won this deal, because it was a huge contract, and the organization was very young, however, very determined. The project was a great success.  Since then, business has started to grow.

 

The funds to start the business were provided by Carl Panattoni?

Of course, the initial capital came from my partner.

 

At the time, the project financing model was similar to how it works today with a large share of debt financing?

It hasn’t changed, the financing model is still the same as we have now. At that time, however, we didn’t have such experience when it came to arranging capital for investments in Europe.

 

You were favored by the fact that you started in the period of the real estate boom

Probably so, but also very quickly, already in 2008 there was a market crash. Paradoxically, it turned out to be beneficial for us. This is because our competitors were large global organizations, which then came to a complete standstill. We slowed down the pace of business, but continued to be active. Transitionally, we may have gone down to 40-50 percent of pre-crisis volumes, which nevertheless strengthened us in terms of market share.

 

There were no problems with financing?

Yes there were, as it was a liquidity crisis. We quickly adapted the business to the new situation and gradually returned to our pace of operation. Two years later we were already the market leader.

 

What was the scale of your business then?

In 2008 it was probably 10 – 15 projects. That’s about 150,000 sqm, while in my previous company I was building 10,000 sqm a year. We were really fascinated by these volumes, although today150 projects a year no longer impress us.

 

Such a big acceleration started in 2011-2012?

That’s when I started to expand internationally. At first in the Czech Republic and Germany, and then I entered most of the important markets in Europe, including the UK, the Netherlands, Spain, France. There was a point when we opened an office in another country every few months. Business grew very quickly. Today I manage 17 countries in Europe plus India and Panattoni is probably the largest global player with such a large share of Polish capital.

 

If you look at all sorts of industry lists, you’ll see that not only are you the largest in Europe – with investment projects worth nearly 5 billion euros – but that number two is behind you by some three lengths. How is that possible?

This is due to our business model, our approach to operations and the fact that we are a private company. We have never brought institutional capital to the balance sheet. However, it works very well with us at the level of individual investments. This model allows us to remain independent, flexible, and responsive. We have the freedom to operate by providing space to clients, financing in a way that is tailored to the client and the local specifics of capital.

 

There is no similar group to yours in the whole of Europe?

As a rule, the market is divided into large institutional players who do very selective deals with limited capital allocation to individual markets and a large number of small, local players. Panattoni is the only platform of this scale.

 

It’s a bit like in residential real estate, where native, local developers have long been tied to particular cities. A significant part of your business is Poland.

That was the case in the beginning. Poland now accounts for 20 percent of our European business, and we continue to expand into other countries for further diversification. Our expansion so far has been logical. I have seen that Poland is growing very well, but there are always small parts of global capital allocated here. . So we thought, why not take advantage of that larger portion and enter the markets of Western Europe, where we also have access to our customer base that needs space. In this way, I wanted to improve the quality of our platform, and in doing so it quickly became apparent that the West is in many ways less competitive than Poland. There is a gap between global and local players. I tried to tap into it.

 

This is similar, for example, to the liquor market, where big companies such as Diageo are only interested in global brands, but 80 percent of liquors are local products made by domestic producers, who are, however, too weak in capital to significantly increase their market position.

An interesting analogy. Here, too, each side has its limitations. Once a large player has filled an allocation to a particular market, such as France, even if Amazon comes in, it won’t invest in another facility. On the other hand, small players don’t have good access to capital, experience and resources, and our global platform offers unlimited capital. We can deliver warehouses for Amazon or any other player at any time and in several markets simultaneously. As I said, the driving force behind our business is that we operate without imposed restrictions. Many developers can’t do another deal until they sell the previous one. Meanwhile, for us, each project is separate. It has an assigned capital, debt, its rate of return, etc. One investment is independent of another. For us, real estate is the resource for doing business. We look at ourselves as a platform to serve investors and customers.

 

So I take back my previous comparison. You are more like Dino, which also fits in between big players interested in select, urban locations, like Jeronimo Martins or the Schwartz Group, and local stores that don’t have the resources to expand. On the other hand, Dino is not an ordinary retail chain, but a kind of factory of very similar stores, which it locates very precisely, so that it can easily predict their performance. For Mark Biernacki, supermarkets are the same business matter as warehouses are for you.

We certainly have a volume approach and try not to unnecessarily complicate our business. We reproduce similar proven patterns. We adapt to the local market, because each has its own characteristics, but rather we try to put up and scale standard buildings. We also have ways to identify suitable locations. They all have similar characteristics. If we know that 2 million people live somewhere, there is an airport, a ring road, then we are left with an analysis of competition, supply and vacancy. This is a very simple analysis. You don’t need a PhD to do it.

 

A significant partner that made an impact on your growth was Amazon. You started working with it more than a decade ago, but it especially drove business during the lockdown and e-commerce boom. That’s when you grew a lot.

 

The beginning of 2020, of course, brought uncertainty, but also a surge in e-commerce growth. Amazon is a kind of litmus test for us, showing which way the market can go. It then abruptly began to expand its infrastructure by creating a network of buildings with a huge scale of 100-200 thousand square meters with a capital value of 100-200 million euros…. The whole industry followed it, including us. And this growth was indeed very dynamic.

 

I understand that your extensive experience with Amazon was a driving force for you and the best possible reference.

Amazon is our largest customer in Europe, and in a way we have opened several markets to meet its needs. When Amazon enters a new global market you have to create new infrastructure for it. The scale of these projects meant that we were able to enter these markets right away with high volume. Then more customers started coming in, too. Many years of experience in setting up infrastructure for e-commerce was, of course, our important asset.

 

And was the Panattoni brand itself helpful in business development?

The brand was not known in Europe. Of course, we leveraged on it from the beginning, but in the end we created it ourselves to a large extent. In the US, the Panattoni brand is not as well-known as in Europe.  Our growth and market success made people think of Panattoni as a European brand, while it is a global company with a very strong American business.

 

Today you also have a 25% stake in the European group. Was this the division from the beginning?

I got part of the shares right away and increased them over time, and today it’s greater than the aforementioned 25 percent.

 

Given the scale of operations, the value of your package can be estimated at several hundred million euros. Is there a prospect for further growth?

I am satisfied with the percentage share, as it is also structured as an equal decision-making vote with Carl Panattoni. As for the value of the stake, there are different valuation methods, but it is clear that my goal is to increase the value of the company and to continuously grow. I am planning a major Asian expansion and the development of ancillary businesses around the ‘core’, which is the development company.

 

After so many years, the Panattoni brand has also acquired certain attributes. For example, Polish developers praise your momentum and efficiency in your operations, but they also feel that you are a very tough player. The kind that there is no mercy and preferential treatment for anyone.

If the market says we are a tough player then I take it as a compliment. I run a flexible business making quick decisions and not everyone can afford to do that.

 

I understand that without it you would not be where you are today. However, I wonder how it is with business development in foreign markets, where you have to rely on local management.

In Poland, too, there is local management. I have hired and work on a daily basis with each of the countries’ heads. We have the same model everywhere. 

 

But if you have such a different mindset from the rest, how do you get the right people for you, who, after all, come from this cautious real estate industry.

Contrary to appearances, we are very careful, but maybe we see more. Of course, we need people with a broader horizon and it’s not easy. Especially in old markets, which have their own approach to many things. Sometimes it takes a while before someone catches on to our way of doing things – more open and holistic. Such a manager has to keep an eye on a lot more than he or she has in the scope of responsibilities. I choose entrepreneurial people with business intuition, which is not easy in Western Europe.

 

To what extent is Panattoni’s success due to the fact that in Europe it started in the Polish market, which is much more dynamic and promotes entrepreneurship? If you build your genotype here, Western Europe can look twice as slow and easy to dominate. 

For developers, Poland is certainly friendly in terms of ease and speed of construction and commercialization. A limitation is the poor liquidity of the market, but the development process itself is very good. In Germany, for example, it takes much longer – access to land is more difficult and administrative processes are slower. If we had started there, we might not have been able to do such a big business. By starting in Poland, we built a critical mass and increased our capacity. This allowed us to be more patient in Germany. There, too, we are now the market leader with a 15 percent share. We achieved this in a decade, starting from scratch. And that’s something! Today we are similarly growing in Italy, for example, where you also have to be patient. However, we lack neither patience nor efficiency.

 

You go much further, by the way, because as I understand it, the Panattoni group can develop all over the world, except for North America. Now you have taken India as your target market.

Yes. India is our first Asian market, a place with huge potential, very interesting geopolitically these days.

 

Are you already carrying out your first project there?

Yes, in New Delhi. We have 20 people on board and quite a few projects planned. We have opened three offices – in Bangalore, Delhi and Mumbai, but it took us some time to purchase our first land. This is significant, because the acreage availability problem is not there, but there are few properties that qualify, have ownership title and the infrastructure necessary for development. The infrastructure is poor and there is no well-connected land with access to routes. This market is very immature, but with enormous potential.

 

Are there any further directions of development as well?

Yes we want to expand further in Asia, but we are also interested in the Middle East. We have a plan to open an office in Saudi Arabia at the beginning of the year, and from the Asian markets Japan seems interesting and looking further afield also Australia.

 

You are looking for new spaces, but it seems that Europe itself is getting a little short of breath. In France or the UK, e-commerce has started to saturate a bit after the boom.

Such a correction is quite natural. The pandemic crisis has greatly inflated infrastructure needs and increased logistical resources. It will take some time to recover, but the fundamental increases will return.

 

However, this means a decline in demand for warehouses.

The decline in e-commerce is obviously having a significant impact, but our business is diversified. An important factor affecting it today, for example, is nearshoring, related to shortening supply chains. More factories and more logistics facilities are not opening in Vietnam or China, but in Europe, including Poland, the Czech Republic, and Hungary. Traditional trade, manufacturing, all industries show demand for warehouses.

 

So you are going up all the time?

That was the case until 2022. It was a peak. An emergency situation. Then there was a general slowdown and we went down to 2020 levels. It looks like 2024 will be better than last year, and further on we should already be recording stable increases.

 

The time of easy and cheap money has also come to an end in 2022. To what extent does this affect the investment aspect of your business?

Certainly, investment demand for real estate has decreased. The main reason is the increase in interest rates and unstable property values caused by this. It looks like 2024 should be the year of recovery.

 

Is that where the idea to create your own fund came from? To fill this capital gap and bring in investors who are not flocking to Poland?

Poland is part of our business. We are a very large-scale company. We plan to continue with our business model and the way we operate. I see the creation of funds independent of the ‘core’ business but cooperating as a step forward, developing new business, but also deepening the platform. .

And don’t you have the ambition to have a fund that will be a holding company i.e. the ultimate owner of the properties you put up yourself? That would make it easier for you to liquidate projects.

Around our core business we want to do additional business, but only the next stage will be a real estate hold. Initially, we are focusing on developer funds…. We have noticed that pension funds, government funds, operate at such a scale that it is hard for them to channel money to individual strategy projects. They don’t fund real estate at the project level, because they don’t have the hands to do the work and analysis, but they want to make money from the development process. That’s why we have created a European platform that will enable these investors to participate in the development process, and allow us to further streamline the system. This is what I was talking about earlier: we treat real estate as business matter, on the basis of which we build further ventures. This gives us the opportunity to develop business in more areas in addition to geographic expansion. Even though Panattoni is already very large, the potential to scale is still huge.

Panattoni secures planning consent for 80,000 sq ft speculative logistics development at prime Heathrow site

Panattoni secures planning consent for 80,000 sq ft speculative logistics development at prime Heathrow site

Panattoni, the largest logistics real estate developer in the UK and Europe, has secured planning consent for a speculative 80,000 sq ft last-mile logistics development in the sought-after Heathrow area after purchasing the site in the first quarter of 2023.

Panattoni will commence speculative development in January 2024 of Panattoni Poyle 80, a net zero carbon development that will be built to a BREEAM sustainability rating of ‘Excellent’ and an EPC rating of ‘A’. Completion is expected in the third quarter of 2024.

Panattoni Poyle 80 is strategically located on Horton Road near junction 14 of the M25. Poyle is one of Greater London’s most established logistics locations, offering direct access to the M25 and close proximity to Heathrow Airport’s passenger and cargo terminals alongside convenient last-mile connectivity with Europe’s largest consumer market, London.

Panattoni Poyle 80 is one of three significant sites in the south east that Panattoni has acquired this year for a combined £350 million, providing value-add development opportunities in core markets, where Panattoni can drive rental growth.

Alex Mitchell, Development Manager, South East and London, at Panattoni, said: “Panattoni Poyle 80 is a rare ultra-urban, last-mile opportunity, providing immediate access to the UK’s largest cargo terminal at Heathrow Airport, and is one of very few opportunities available in this market.

“The development of Panattoni Poyle 80 reaffirms our ongoing commitment to our speculative development programme and the broader logistics sector, which continues to benefit from strong occupier demand for well-located, high-quality assets with enhanced sustainability credentials. We have been encouraged by early interest and look forward to starting this development next year”.

Stephen Vickers, Commercial Delivery Director at Panattoni, said: “We are pleased to be moving forward on the delivery of the new site, with planning now secured to deliver a sustainable facility for occupiers. Panattoni has reviewed the supply chain to make sure we are reducing our carbon output and delivering a net zero carbon development in construction. The facility will deliver a highly sustainable scheme to an excellent specification in a desired prime location”.

 

Agents at Panattoni Poyle 80 are DTRE and ACRE Capital Real Estate.

Panattoni launches first project in India with 360,000 sq ft first phase of Delhi NCR park

Panattoni launches first project in India with 360,000 sq ft first phase of Delhi NCR park

Panattoni, one of the world’s largest industrial real estate developers, announces its inaugural project in India with the launch of the first phase of Panattoni Park NH71 in Delhi NCR.

This environmentally conscious Grade A warehouse park by Panattoni India signifies the company’s entry into the Indian market. Panattoni is investing INR 110 Crores (€12 million) in the first phase of the project, which will total 360,000 sq ft, as part of a planned €100 million investment in projects in India in the next year.

This investment reflects Panattoni’s commitment to contribute significantly to the country’s industrial growth.Construction is scheduled to commence by March 2024 with completion targeted by the end of the fourth quarter of 2025.

Situated on National Highway 352 (formerly known as National Highway 71) in the Delhi-NCR region, in the heart of an established warehousing cluster encompassing Luhari on one side and Farrukhnagar on the other, the park benefits from its proximity to a large congregation of major retailers, logistics companies, e-commerce and industrial occupiers.

Designed to meet diverse industrial requirements, the development focuses on sustainability, utilising eco-friendly methods and innovative infrastructure, including 100% wastewater recycling. The focus on sustainability aligns with Panattoni ‘s commitment to reducing environmental impact by optimising resource usage, promoting low-emission transportation and actively participating in initiatives as part of the Indian Green Building Council.

Commenting on the announcement, Sandeep Chanda, Managing Director India, Panattoni, said, “Serving as a gateway to India’s dynamic industrial landscape, Panattoni Park NH 71 marks our first bold step into India’s thriving market. We are excited to introduce phase 1 of our world-class warehousing establishment in the heart of the Delhi-NCR region, reflecting our commitment to providing premier spaces that empower businesses and fuel economic growth.

“As global leaders in industrial real estate development, we will prioritise sustainable ESG policies to reduce CO2 emissions and benefit the communities we serve in India. The inaugural project exemplifies our dedication to innovation, strategic development and creating opportunities that drive success for our clients and the communities we serve”.

Panattoni views India as a critical node for its global business and plans to rapidly expand in the country in the coming years.

Panattoni appoints Nick Preston to lead new investment management division

Panattoni appoints Nick Preston to lead new investment management division

Panattoni, the largest logistics real estate developer in Europe, has appointed logistics real estate veteran Nick Preston to diversify and grow its investor base.

Preston has been appointed head of the newly created Panattoni Investment Management, which will provide Panattoni with additional pools of capital. Reporting to Robert Dobrzycki, CEO and co-owner of Panattoni Europe and India, Preston will work by forming discretionary pools of capital with longer investment horizons, supplementing the company’s existing investor base.

One of the benefits for the new investors will be the opportunity to gain exposure to both the enhanced returns from Panattoni’s extensive development pipeline and a clear stock selection policy to provide long term outperformance. Panattoni has been the largest logistics developer in Europe for the last seven years with market leading expertise in delivering high-quality, sustainable logistics facilities in the UK, Germany, France, Italy, Belgium, Netherlands, Poland, Spain, Portugal, Slovakia, Czech Republic, Austria, Hungary and the Nordics. Panattoni’s commitment to be net zero carbon in all of its new developments by 2025 accords with the deep rooted ESG focus of Panattoni Investment Management.

Preston is a specialist European real estate investment manager, with particular expertise in the industrial and logistics sectors. He was previously CEO of Tritax EuroBox plc, the FTSE 250 listed pan-European logistics investor. Between 2012 and 2016 he broadened his European experience at Grosvenor Fund Management, helping grow the business, particularly in the Nordics.  Before that, he was instrumental in growing CBRE Investment Management’s UK business..

Nick Preston, Head of Panattoni Investment Management, said: “Joining Robert and the team at Panattoni, the unrivalled best-in-class logistics platform in Europe, gives me a significant opportunity to help the company grow by tapping into new sources of capital.” .

“This is an opportune time to be investing in logistics following the recent price corrections that have taken place. The market fundamentals remain well placed with robust occupier demand and constrained land supply and low vacancy levels. We are going to be opportunistic in our investment approach, with discretionary mandates allowing us to react quickly to opportunities as they arise”.

Panattoni delivers on its promise to create a new link road

Panattoni delivers on its promise to create a new link road

A new road designed to improve the flow of traffic in and around Aylesford has been officially opened.

The £8m road linking Station Road and Bellingham Way, has been delivered by Panattoni as part of its £180m redevelopment of the former Aylesford Newsprint site. Creating more than 1 million sq ft of high quality logistics and distribution space, the site near Junction 4 of the M20 in Kent is the South East flagship development of Panattoni, the largest logistics real estate company in the UK and Europe.

The road was jointly opened with a cutting of a ribbon by Cllr Roger Gough, Leader of Kent County Council; Cllr Matt Boughton, Leader of Tonbridge and Malling Borough Council, and Tony Watkins, Panattoni’s Head of Development for South East and London.

Tony Watkins said: “It’s great to be able to deliver on a key part of our promise to the local community. This new road has been designed to relieve congestion on the local road network and enable the site to support high quality businesses and the people they will employ.”

As a result of the new road, all non-HGV traffic destined for Panattoni Park Aylesford or New Hythe Business Park can now access them via junctions 4, 5 and 6 on the M20, via Bellingham Way and Station Road.

KCC Leader Roger Gough, added: “This investment in new infrastructure shows why it is so important to attract positive investment from market leaders such as Panattoni.

“The timely provision of the new link assists with local connectivity, complementing the area’s highway network, and has enabled the redevelopment of the vacant Aylesford Newsprint site, creating thousands of new jobs. We look forward to supporting Panattoni’s continued investment in Kent and see this as a great vote of confidence in the importance of the county’s economy.”

Thanks to its location, the site called Panattoni Park Aylesford, is now home to Amazon, the world’s largest online retailer; DHL, the global logistics company; Evri, the UK’s biggest dedicated parcel delivery company; Fowler Welch, the temperature-controlled logistics company, and Marley, a UK leader in the manufacture and supply of pitched roof systems to the construction market. Planning permission has also recently been granted for the development of 630,000 sq ft to be constructed on the site. The only remaining space is Plot 6A which offers the design and build of a further 16,500 sq ft of space for another logistics industry business.

Cllr Matt Boughton, said: “Since first unveiling its plans in 2020, the team at Panattoni have been true to their word and transformed this derelict 90-acre site. They must be congratulated for delivering a really high quality home for world-class businesses offering a wide range of modern jobs here in Tonbridge and Malling.”

As part of an agreement with Tonbridge and Malling Borough Council during the planning process, Panattoni will support the refurbishment of the Aylesford and New Hythe railway stations. It will also extend the provision of local bus services in the area, and put new cycle paths and footpaths in place.

The existing buildings on the site have been built to achieve high environmental performance. DHL’s building is a net zero carbon facility with a BREEAM rating of ‘Excellent’ and an EPC rating of ‘A+’ to support its last-mile facility serving the South East. The 97,891 sq ft building taken by Fowler Welch incorporates a 1.5MVA photovoltaic array covering the roof; a bespoke car park canopy; and cycle shelter. The peak electrical output from the solar panels is equal to the incoming supply, which means the Fowler Welch facility will be able to operate fully from the power generated onsite.

Panattoni passes £350m in southern acquisitions in 2023

Panattoni passes £350m in southern acquisitions in 2023

Panattoni, the largest logistics real estate developer across the UK and Europe, has passed the major landmark of £350 million through three significant acquisitions this year.

The first quarter saw Panattoni acquire a prime west London redevelopment site near Heathrow Airport where an 80,000 sq ft unit will be delivered for Q3 2024; the site is called Panattoni Poyle. The start of the third quarter saw the acquisition of a site to deliver 800,000 sq ft in Milton Keynes, where the business will construct two speculative units of 350,000 sq ft and 450,000 sq ft. The end of the third quarter sees the acquisition of a two unit park totalling 626,468 sq ft in Sittingbourne, strategically located to the Southeast of London 4 miles from junction 5 of the M2.

The 26-acre site, acquired from Abrdn, will be developed as a state-of-the-art, net zero carbon development. This prime location offers unparalleled access to local and national distribution routes facilitated by the M2, M20, and M25 motorways. The development will provide seamless connectivity to vital markets such as London, the Southeast, and Europe via London Thamesport, Dover, and the Port of Tilbury.

The site has planning consent for two distinct units, spanning 439,228 sq ft and 205,320 sq ft, respectively which will be speculatively developed.  Construction is due to commence at the end of the fourth quarter of 2023, with a targeted completion date in the fourth quarter of 2024. A key advantage and differentiator of Panattoni Park Sittingbourne are its enhanced environmental, social, and governance (ESG) features; the site has 5MVa of power available with a further capacity of additional 1.35MVa from the solar PV provided as part of the base specification by Panattoni. Furthermore, Panattoni will engineer the construction to achieve a BREEAM sustainability rating of ‘Excellent’ and an Energy Performance Certificate (EPC) rating of ‘A’.

Panattoni’s acquisition at Sittingbourne follows its success at the nearby 1.6 million sq ft Panattoni Park Aylesford; the level of demand in the region has  resulted in the scheme being  100% pre-let to major national and international occupiers in less than 24 months from acquisition

Tony Watkins, Head of Development for the South East and London at Panattoni, said, “This third acquisition in the South in 2023 confirms our success in delivering on a strategy to acquire land that provides value to investors and customers in the current commercial environment. We will continue to selectively purchase key developments that offer value-add opportunities within core markets in London and the South East, where we can drive rental growth”.

Finally, he said “we expect to be announcing more acquisitions this quarter”.

Panattoni were advised by JLL, Abrdn were advised by Avison Young and Savills

Ollie Wyllie

Financial Controller

Fully automated warehouse for ViaPharma at Panattoni Park Prague Airport II Green Solutions:

BREEAM Outstanding at Panattoni Park Cheb, Czech Republic for Real Digital Green Solutions:

Fitting largest solar roof in the UK for M&S at EMDC​

Panattoni’s team developed the 900,000 sq ft solar array at the Marks & Spencer’s distribution centre in Derbyshire, making this the biggest in Europe at the time of installation. The array will generate over 5,000MWh of electricity per year and reduce the building’s carbon footprint by 48,000 tonnes over 20 years. The array provides almost 25% of the energy the distribution centre needs, making it nearly self-sufficient during daytime operations.

The Marks & Spencer distribution centre also has a solar wall that allows the building to passively regulate its own internal temperature, and the enabling work included 92,000 tonnes of concrete broken out and recycled on site.

These measures earned the building a carbon neutral certificate and BREEAM ‘Excellent’ accreditation.

Delivery of Energy Park in Kettering, UK

The extension to the existing Burton Wold Wind Farm involved the installation of nine GE 1.6MW turbines, the most efficient available when commissioned, to create a new 14.4MW wind farm at the site.

The wind farm saves an average of 12,831 tonnes of CO2 each year. In its remaining 15 years of life it is expected to save another 201,000 tonnes of CO2.

As part of this project, leading members of the team also designed a prototype for local energy generation that linked renewable energy technologies, local businesses and the local community in a virtuous circle of production and consumption.

Melissa Berry

Finance Assistant

Melissa works within the Finance and Accounts department at Panattoni in the UK. Her responsibilities range from facilitating payments for the development projects in the UK, assisting with accounting activities of all invoice reports and expenses from the UK teams. Prior to joining Panattoni, Melissa achieved a First Class BA Honours from Queen Mary University of London in History as well as a Masters in Law.

Faye Burrows

London Business Support

Faye works within Panattoni’s London Business Support team, where her role revolves around a robust administrative skill set. She ensures consistent organisation within the London office and team. Faye’s great attention to detail, contributes to the smooth operation of day-to-day activities, maintaining a well-ordered and efficient work environment. As well as this she consistently manages corporate schedules and coordinating essential tasks for all areas of the Panattoni team.

Jordan Madden-Nadeau

Financial Accountant

Jordan serves as a Financial Accountant for Panattoni. He is responsible for the accounting operations within the UK and for its projects, with a particular emphasis on ensuring tax compliance and facilitating with the audit process. A qualified member of the Association of Chartered Certified Accountants (ACCA), he brings over five years of experience in the property industry to his role. 

Grace Dignum

London Business Support

Grace works within Panattoni’s London Business Support team and plays a pivotal role in ensuring the company’s seamless operations.
Working closely with the team, she contributes to the efficient functioning of the London office while offering administrative support to various members of the business. Grace also works alongside the marketing team, where her specific function involves assisting in various UK events and marketing initiatives. 

Lydia Room

Marketing Manager

Lydia works within the marketing team as a Marketing Manager. Lydia is responsible for assisting the formulation of both corporate and scheme related material for Panattoni in the UK, alongside working with Francesca on the implementation of new marketing strategies. Lydia has a first class degree in Marketing & Communications along with a strong background expertise and practice in graphic design.

Harriet Wing

Marketing & Events Manager

Harriet is the Marketing and Events Manager at Panattoni, she is responsible for co-ordinating all events at Panattoni UK. Harriet’s impeccable organisation skills are integral to making all Panattoni events as seamless as possible. Harriet works very closely with the marketing team overseeing the consistency of Panattoni’s core values and brand positioning and that they are upheld throughout Panattoni’s messaging.

Francesca Linnitt

Head of Marketing & Communications

Francesca is Head of Marketing for Panattoni in the UK and is responsible for developing the corporate profile and executing marketing strategies for all the UK projects. Francesca’s role includes managing the external communications for Panattoni and bringing new and innovative marketing ideas to fruition. Francesca works closely with the Panattoni European marketing team to ensure a seamless brand across Europe and has brought many new ideas into the business.

Josh Butler

Senior Project Manager

Josh is an experienced project manager at Panattoni with over 15 years’ experience in the industry, he has delivered large scale speculative and build to suit projects across the whole of the UK. Josh has been heavily involved in large site remediation schemes over the course of his career and is from an engineering background. Josh has an extensive knowledge and expertise’s of onsite delivery.

Stephen Vickers

Commercial Delivery Director

Stephen manages the commercial delivery of our developments on a national basis and works within the project management team to deliver the high complex construction projects. He has spent more than 30 years in the industrial and logistics sectors, delivering a wide range of developments in the UK and Europe. He also has a vast knowledge of delivering sustainably accredited facilities, working with BREEAM, ESG, Net Zero and GRESB frameworks.

Owen Follett

Project Delivery Director

Owen has an impressive track record in the delivery of large scale build-to-suit projects with a particular emphasis on the delivery of industrial facilities for global automotive, aerospace and e-commerce occupiers. He has been responsible for the development of over 20m sq ft of new build industrial space in the UK and internationally. Projects include new automotive plants, aerospace manufacturing facilities, research and development centres and multi-modal logistics developments. Owen now works with the development team on a national basis in the delivery of highly complex construction and infrastructure projects.

Mark Powell

Project Delivery Director

Mark is a highly experienced delivery Director with over 20 years-experience in the industry, he has delivered both speculative and build-to-suit projects for a broad cross section of clients, ranging from aviation to manufacturing. Mark is capable of quickly assessing projects and implementing strategies to ensure all aspects of the scheme are delivered to exacting standards. A Fellow of The Chartered Institute of Building, Mark can deliver the most complex and challenging schemes.

Peter Carter-Wall

Construction Director

Peter is in charge of the on-site delivery and quality control of all construction projects at Panattoni. Peter has over 20 years experience in the project management sector and now specialises in the delivery of large-scale industrial buildings, site infrastructure & remediation. Peter has worked with the management team for over 10 years and is highly regarded in the market, with a reputation for his meticulous and diligent approach to construction management.

Simon Willgress

Project Delivery Director

Simon is an experienced member of the Panattoni project management team, and has extensive client side experience in the logistics sector, having spent 13 years working within leading FTSE 100 companies. Simon is responsible for all the technical due diligence and implementation of the development programme on his projects and brings highly valuable experience of automated warehouse developments. Simon is particularly interested in low carbon design development.

Ian Anderson

Head of Project Management

Ian is a highly regarded and experienced Head of Project Management, with responsibility for procuring Panattoni’s land acquisition, build-to-suit and speculative build programme. Ian combines his practical and commercial approach, with a keen eye for detail, ensuring that all projects are delivered to the highest standard. Ian has particular expertise in the negotiation and contract tender for large scale industrial buildings, with a background in structural engineering. In the last 18 years, Ian has gained considerable experience and market knowledge in the industry.

Tanya Thewlis

Capital Markets Business Manager

Tanya is responsible for providing operational support to the Capital Markets team in the UK. Tanya assists with the formulation of capital and financing solutions and helps to maintain investor relationships. Tanya has 20 years in operational support which offers a wide skill set that allows her to assist the capital markets team in smooth operations and client management.

Tom Watkins

Transaction Manager: Capital Markets

Tom is an integral part of the UK Capital Markets team and works closely with Nick Cripps, providing financial assistance and analysis. At Panattoni Tom’s role includes the preparation of financial appraisals for acquisitions, preparing investment documents for Panattoni’s capital partners and consolidating Investment Committee Reports for Panattoni’s internal approval process. Tom is a member of the Royal Institute of Chartered Surveyors (MRICS).

Oliver Winchcombe

Head of Portfolio Management and ESG

Oliver manages the property and asset management of the UK portfolio, working closely with the project management and finance teams. He is an experienced property manager, having spent many years with specialist property management consultancy firms, and working on behalf of large institutional funds. He is also a member of the Royal Institution of Chartered Surveyors (MRICS).

Indy Gill

Financial Controller

Indy is the Financial Controller for Panattoni in the UK. He is responsible for the accounting activities of Panattoni and its development projects in the UK, with a focus on consulting with external auditors and tax advisors. Indy is a member of the Association of Chartered Certified Accountants (ACCA) with many years of experience in the property industry.

Scott Meakin

Development Surveyor
North West & Yorkshire

Scott is a development surveyor in the North West and Yorkshire development team. Scott has over 5 years’ experience in commercial property. He started his career in real estate consultancy where he qualified as a Chartered Surveyor. More recently, Scott has been involved in the delivery of large-scale industrial & logistics developments across the UK. Scott’s focus will be to support with the acquisition of new sites and help deliver new projects.

Ethan Greene

Development Manager
Southern England & London

Ethan is a Development Manager at Panattoni and works in the Southern England & London development team, helping to expand the business in the region. Ethan’s primary focus is to support with the acquisition of new sites and help to deliver new build development projects. Prior to Panattoni, Ethan studied Business and Economics at Trinity College Dublin, Ireland, where he graduated with a First Class Honours degree.

Alex Mitchell

Development Manager
South East & London

Alex’s role at Panattoni is to deliver new build development projects and assist in the leasing of existing speculative development. Alex is focused on London and the South East region, and works closely with Anthony Watkins in supporting the national team to expand the business. Prior to Panattoni, Alex worked for Lambert Smith Hampton as a Chartered Surveyor advising a number of blue-chip occupiers on their nationwide acquisition and build-to-suit programme.

David McGougan

Development Director
South East

David has over 17 years’ experience in customer-centric, high-quality industrial and logistics development. David is responsible for the growth of both speculative and build-to-suit developments in the South East. David has a vast knowledge of the market and has a track record of delivering over £270 million of build-to-suit and speculative developments.

Gregg Titley

Head of Development
East and West Midlands

Gregg heads the development growth strategy in the East and West Midlands region. Gregg has more than 25 years’ experience in delivering projects for blue-chip customers on both speculative and build-to-suit basis. Gregg has specialised in large-scale delivery of bespoke and sustainable development facilities.

Andrew Preston

Head of Development
North Midlands & Yorkshire

Andrew has over 15 years experience in the industrial real estate market. Andrew’s role at Panattoni is to accelerate the land acquisition programme for speculative development across the wider Midlands and Yorkshire region. Andrew has a broad breadth of experience in the commercial property sector, with a detailed knowledge of the leasing and development process and is currently responsible for some of the UK’s largest speculative development projects.

Daniel Burn

Head of Development
North West & Yorkshire

Dan leads Panattoni’s Northern office, based in Central Manchester. Dan is responsible for accelerating the company’s land purchase, build-to-suit and spec build programme across both the North West and Yorkshire Region. With 20 years transactional experience, Dan is well recognised within the market, having been involved in many of the UK’s pre-eminent industrial & logistics schemes. Since working in the sector, Dan has gained a reputation for his approachable, pragmatic and customer focused approach to business.

James Watson

Head of Development
Southern England & London

James has 15 years experience in the property market and is responsible for expanding the business in the South East region. James’s role at Panattoni is to originate and deliver both large scale speculative and build-to-suit projects. In the last three years, James has delivered over £350 million of new build projects, including some of the largest logistics build-to-suit projects in the market.

Tony Watkins

Head of Development
South East & London

Tony is responsible for expanding the company’s land and speculative build platform in the South East. Tony specialises in the execution and delivery of major industrial schemes. Tony is highly accomplished in a variety of surveying sectors, with over 25 years experience. Prior to joining the Team, Tony has held senior positions in the clean-tech and waste management industry, having previously been CEO for a bio-fuels and waste-to-energy and renewable energy business.

Nick Cripps

Head of Capital Markets

Nick is an Executive Director, Capital Markets Europe and is Head of the UK Capital Markets team, with responsibilities for the capitalisation of projects across the UK and Europe. With his role in capital formation for the Group, Nick is an integral part of the Global Capital Markets network and works closely with Panattoni’s international operating platform helping originate and structure capital solutions, and manage global and Pan-European investor relationships.

Oliver Choppin

Finance Director

Oliver is the Finance Director for Panattoni in the UK, overseeing the company’s financial strategies and is responsible for all financial aspects of the UK business including structuring, debt finance, deploying capital allocations, he also works closely with Panattoni’s European finance platform. Oliver has a wealth of experience in real estate finance having spent over 20 years in various treasury and accounting roles and been involved in over £7 billion of financing deals in both public and private debt markets. He is a fellow of the Association of Chartered Certified Accountants (FCCA).

Oliver Bertram

Head of National Development

Oliver is Head of National Development for Panattoni in the UK and is responsible for the national transactional platform in the UK. Oliver is recognised within the sector as a market specialist and is known for his personable approach to business and has earned a reputation for his commitment to customer service. Oliver has completed a number of significant industrial and logistics development projects across the UK.

Fergie Taylor

Head of Development Delivery

Fergie is responsible for managing the Panattoni UK delivery platform and has been instrumental in both establishing and guiding the Panattoni supply chain and project management team. With over 30 years of experience in the logistics sector, Fergie is recognised as one of the leading delivery directors in the market, with a keen interest in both low carbon design and sustainable development. Fergie has an unparalleled track record in the delivery of major industrial facilities and has procured an extensive range of new build logistics space for a variety of blue-chip customers.

Matthew Byrom

Managing Director UK

Matthew is Managing Director of Panattoni, representing the UK on both the European and Global Investment Committees that guide the strategies and day to day operations of the business. He also leads in the identification of new business opportunities and company investment. Since forming First Industrial in 2009, which merged with Panattoni in 2017, Matthew has continued to build on his reputation for the delivery of major development projects in the UK while continuing to grow the business.

Sara Lewis

UK Business Support

Sara works within Panattoni’s Business Support team. With over 10 years’ experience at Panattoni, Sara supports the Executive Team with the day-to-day operations of the business. Sara has developed her skill set to assist across the wider Panattoni business throughout the UK.

panattoni_wind_turbine

Delivery of Energy Park in Kettering, UK

The extension to the existing Burton Wold Wind Farm involved the installation of nine GE 1.6MW turbines, the most efficient available when commissioned, to create a new 14.4MW wind farm at the site.

The wind farm saves an average of 12,831 tonnes of CO2 each year. In its remaining 15 years of life it is expected to save another 201,000 tonnes of CO2.

As part of this project, leading members of the team also designed a prototype for local energy generation that linked renewable energy technologies, local businesses and the local community in a virtuous circle of production and consumption.

Fitting largest solar roof in the UK for M&S at EMDC​

Panattoni’s team developed the 900,000 sq ft solar array at the Marks & Spencer’s distribution centre in Derbyshire, making this the biggest in Europe at the time of installation. The array will generate over 5,000MWh of electricity per year and reduce the building’s carbon footprint by 48,000 tonnes over 20 years. The array provides almost 25% of the energy the distribution centre needs, making it nearly self-sufficient during daytime operations.

The Marks & Spencer distribution centre also has a solar wall that allows the building to passively regulate its own internal temperature, and the enabling work included 92,000 tonnes of concrete broken out and recycled on site.

These measures earned the building a carbon neutral certificate and BREEAM ‘Excellent’ accreditation.