Logistics developer Panattoni has embarked on a significant expansion journey, bolstered by a £625m development loan, targeting the UK’s speculative development market.
- Fuelled by this financial boost, Panattoni aims to tackle the undersupply of XXL logistics units, focusing on strategic locations for maximum impact.
- Recent acquisitions, including a 65-acre site with approvals for expansive warehousing, underscore the company’s aggressive growth strategy.
- Panattoni’s commitment to sustainability is evident in its new projects, targeting net zero carbon development and high sustainability standards.
- Financial flexibility, afforded by a revolving credit facility, allows Panattoni to swiftly seize new investment opportunities without complications.
Logistics developer Panattoni is pushing forward with ambitious expansion plans in the UK, after securing a substantial £625m development loan. This financial injection is intended to drive growth in the speculative development market, a sector where Panattoni sees considerable potential.
The company’s strategy includes addressing the undersupply of large logistics units in key locations. Recent strategic acquisitions highlight this approach, particularly the purchase of a prime 65-acre site on the Nottinghamshire/Yorkshire border. This site is set to host the largest-ever speculative logistics development in Northern England, with plans for a massive 770,000 square foot building.
In addition to this landmark project, Panattoni has added several new sites this year, expanding its industrial space by an additional 2 million square feet. This expansion complements its existing commitment to a three million square foot speculative build program, underscoring its aggressive approach to growth.
The newly secured loan facility, arranged with JP Morgan and a syndicate of lenders, spans up to five years and is extendable, providing Panattoni with the financial agility to pursue a new wave of speculative warehousing projects in undersupplied areas.
Panattoni Managing Director Matthew Byrom expressed the company’s enthusiasm for the growth opportunities this loan presents, emphasising their aim to develop ‘best-in-class assets’ and expand their development pipeline swiftly. Finance Director Oliver Choppin highlighted the benefits of a flexible revolving credit facility, noting it allows rapid capital access and investment finalisation without undue complications.
Noteworthy is Panattoni’s focus on sustainability in its new developments, particularly aiming for net zero carbon outcomes, an EPC rating of ‘A’, and a BREEAM ‘Outstanding’ sustainability rating. Its latest acquisition at junction 34 of the A1(M), named Panattoni Central, is set to be a two-phase development with construction starting this autumn and expected completion by September 2025. The project will include features such as EV charging points and significant natural lighting.
Panattoni’s strategic location choices, such as the site near major distribution routes including the A1(M), M1, and M62, are designed to enhance logistical efficiencies. The company aims to capitalise on the current scarcity of giant logistics units, catering to high demand across the UK market.
Overall, Panattoni’s robust approach positions it well to meet the needs of logistics operators seeking large-scale, efficient facilities. Their projects are closely aligned with sustainability goals, offering a forward-thinking model for future developments.
Panattoni’s strategic expansion and sustainability-focused developments reflect a proactive response to UK logistics demands.
