Logistics land

Colliers and Lambert Smith Hampton have been appointed by the port operator to create around 700,000 sq ft of manufacturing or logistics facilities at the two locations split across the Redbridge site and Marchwood Industrial Park.

The sites are part of a national initiative by ABP which will see it release more than 1,000 acres to support the UK’s supply chain, manufacturing and renewable energy sectors. “These strategic sites are capable of attracting a range of businesses to Southampton and creating new jobs,” said ABP’s head of property in Southampton, Ian Henderson.

“Redbridge is a prime development site located in the thriving Western Docks. It sits within the Solent Freeport area and will provide tax benefits for businesses locating there.”

It has been estimated that a business leasing a 100,000 sq ft warehouse for 25 years in a freeport location could achieve tax savings of more than £4m in its first five years of occupation.

The growth of online retailing – currently generating nearly £100 billion in the UK – is creating unprecedented demand for logistics space. It is estimated that for every additional £1 billion of online spend around 1 million sq ft of logistics space is needed to fulfil delivery.