Bulletin

Ecommerce buoys logistics property investment

Property Data has revealed that ecommerce is fuelling a boom in logistics property investment across Europe, with the UK leading the way. As retailers attempt to keep pace with changing customer demands, €19.8bn was pumped into properties such as warehousing and distribution hubs in 2014, marking a seven-year high and a 34% year-on-year increase. In Britain, investment in the sector jumped 65% to €7.9bn, and the strongest proportional rise was seen in Ireland, where investment in logistical properties surged 7,200% to €197m. In Finland, investment increased by 849% to €1.14bn, whilst in Spain the figure rose 273% to €608m. In a sign of the rapid expansion of cross-border ecommerce, Amazon is building five fulfilment centres in Poland and the Czech Republic to open through 2015. Ecommerce Europe estimates that the European commerce market is worth€363.1bn. Amazon also took up one of the largest leases of 2014 when it secured 1m sq ft of warehousing at Daventry in the "golden triangle" distribution hub in the UK midlands. Next, Waitrose and Primark also all committed to new warehouses larger than 900,000 sq ft. UK online fashion retailer Asos opened a 200,000 sq ft European hub in Berlin last year and is believed to have secured an accompanying plot which will see capacity doubled.

 

Note: News bulletin content has been provided by a third-party and is not the opinion of Santander.

 

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