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ADDING VALUE TO WAREHOUSE SUCCESS WITH “SECURE START” OFFER


October 2019

Barwood Capital has recently completed its largest and most successful development project to date, known as Super G in West Yorkshire. This 13 acre site which forms part of the wider Glasshoughton colliery redevelopment, was purchased by the Barwood Property 2017 Fund in August 2018 in a joint venture with the British Airways Pension Trustees. The site was chosen by the Barwood Capital team having identified an opportunity to provide a high quality logistics building in a market with little supply to meet occupational demand, and with clear prospects for rental growth relative to other regional markets.

This new 261,000 sq ft logistics warehouse was then developed in partnership with developer Tungsten Properties. Terms were agreed with global sportwear company, Puma UK, running up to practical completion of the building in May 2019 and finance director, Simon Venediger comments: “With over 40 years’ presence in Yorkshire and with a valuable and loyal workforce of 125 it was our priority to find a new distribution hub which would sustain our existing business and facilitate our exciting future growth plans; in Super G we have identified an outstanding facility which meets both needs”.   

Before...

After

Secure Start - BiS Henderson

A key part of Puma's decision making process was the role played by BiS Henderson, a supply chain and logistics consultancy business originally established by Barwood Directors. When lease terms were being agreed with Puma, we were able offer a “Secure Start” service on behalf of BiS Henderson. This service is a project managed end-to-end solution for logistics companies, which was able to support the implementation of Puma’s new warehouse operations. The objective was to reduce risk, condense project time and minimise double running costs.

Puma’s existing logistics activity in the UK is centred around 3 facilities in Batley and Morley, with additional overflow storage in 3rd party logistics warehouses from the UK, Eire and Benelux regions. The design and project management phase supported warehouse layout designs, built a detailed capital budget to support the investment case, provided a programme for the delivery of the new facility through to going live, and identified key project risks to meet the objectives of stock build in November 2019.

The brief from Puma was to provide warehouse designs to accommodate more than 20,000 pallet spaces, mezzanine floors to support 45,000 stock keeping units (SKUs), conveyors with auto labelling and container unloading, along with outbound lanes across 14 dock level doors. In addition the warehouse will have a battery area for 30 pieces of handling equipment (MHE), 48 pack benches and auto-sealers, a 10,000 sq ft office area and a variety of gates, lifts and conveyors to move goods between mezzanine floors.

The BiS Henderson role and advice to Puma is an example of how adding value to the process is a key component of enabling tenants to implement their business plans and ultimately commit to taking a lease. It is not just about providing the building, but working to understand a tenant's requirements, and as in this case, provide extra resource and expertise to help them meet key business objectives.

Puma’s corporate goal is to be the fastest sports brand in the world, and hopefully this challenge to relocate their UK logistics operation under one roof will meet that goal. Puma is a world-class sports company and has shown its commitment to Yorkshire through this significant major letting. BiS Henderson has played a key role in this process, alongside development partner Tungsten Properties, and we hope they will help to secure other lettings across our portfolio in the future.

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