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Sainsburys Supermarket at DIRFT

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The Challenge

In January 2011 Cushman & Wakefield were tasked by the Sainsbury’s logistics team to identify sites or buildings which could accommodate the following:

  • Up to 1 million sq ft with good motorway activity
  • Proximity to rail freight terminal
  • A height solution to accommodate an automated racking system
  • Delivery in 2015

The Solution

From C&W’s detailed review of the market, only four sites match the requirement which were Daventry Intermodal Rail Freight Terminal (DIRFT), G Park, COR and Birch Coppice.  

DIRFT was selected as the best fit from an operational and occupational cost basis.  While not the cheapest solution, the operational basis was considered to outweigh any occupational cost savings of any of the alternative locations.

The Results

Over an 18 month period C&W negotiated with ProLogis to achieve terms for the acquisition of a 972,000 sq ft warehouse of which 532,000 was considered to be high-bay and on the basis of a new 25 year lease.

The terms agreed were considered to be in line with those agreed three years earlier with Tesco and reflected the ability to negotiate in a competitive market where headline rentals were increasing and rental incentives were reducing on what is now considered to be one of the best national distribution locations in the country.

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