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Photo: Reuters |
Forget the West End shops and Mayfair offices. Real estate investments in London target small warehouses, says Bloomberg.
Rents in declining industrial areas in cities are increasing as online retailers like Amazon look for local centers to shorten delivery times. This, in turn, attracts some of the largest investors in the world – from the Blackstone Group investment to the Singapore-based GIC
The Amazon effect first strikes large warehouses outside of the city and can have up to 15 football fields. Now the warehouse space in the cities is under his influence, changing the long-standing hierarchy of the commercial real estate market
"We recently bought a property .I said that c & rsquo; Was expensive, but we thought we could raise the rent by 50% or maybe more, "says Andrew Jones, president and CEO of LondonMetric Property, a real estate investment trust,
Amazon has rented two Zennor Road warehouses despite a 60% increase in tenant rents for current contracts
Online retail giant tests Amazon Flex service, which is paid to local people to make deliveries as drivers The Amazon alone accounts for one tenth of the British warehousing space last year, according to Savills
Blackstone, the biggest investment Real estate weaver in the world, warehouses, building a network of large warehouses in Europe for six years before selling them to the Chinese company China Investment for $ 12.25 billion ($ 14.3 billion). The success attracted other investors, which led to the emergence of new projects and increased the risk of excessive supply in the context of the relatively easy implementation of similar implementations
After the sale of small warehouses in major European cities, which entails a lower risk of over-development. It has already invested about 4 billion euros. The Singapore State Fund is also entering the market. At the end of last year, the European Warehouse Department of GIC announced its intention to start buying industrial goods
"As consumers increasingly expect their goods to be delivered the same day, tenants, "said James Sepala, head of Blackstone Europe's real estate department
As in many of the world's largest cities, London authorities are under pressure to build more homes, for e but In recent years, this has encouraged local authorities to accelerate the sale of urban industrial land for housing, a report published by Segro, a real estate company last year, revealed that policies could create a serious space shortage for businesses, especially given the growth of online retail
Land degradation and rising prices are why a new approach to warehouse development has been adopted. At Peruvian Wharf, about 4 km east of London's financial district, Gazeley's GLP Pte division plans to build the first logistics center in the British capital (the last section of the supply chain in London). goods center to the end customer – order online).
Each floor will have an area of 13,000 square meters, more than twice the size of the average football field, and will be available for trucks through a series of platforms
Gazeley buys land from a contractor in the residential construction sector that abandoned high-rise residential building projects after a change in urban planning policy. But there are signs that the cost of industrial space is growing so fast that in some parts of London, storage costs may be higher than housing costs, even without government intervention, says Alex Verbeck, general manager. from Great Britain at Gazeley. 19659004] "There is a revaluation" of pensions and public funds that reduce the number of stores and malls in their real estate portfolio and buy warehouses, says Verbek
This is partly due to the lucrative real estate transactions of Blackstone and the fact that urban warehouses are usually quite small, "While Blackstone has confirmed that light industry is really the badiest sector in the world, it can become a reality," says Richard Croft, CEO of M7 Real Estate LLP , Blackstone's partner in its latest step-by-step logistics strategy.
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