(Updated 10 May to add lease length and agent for landlord.)
American e-commerce order fulfilment company PFS has continued its expansion into the UK by letting a large warehouse in Fareham, which will serve as a major hub for its beauty clients.
The firm, which handles orders for household retailers such as L’Oréal USA, Champion and Pandora, has taken 70,000 square feet at Radial 27, a former Amazon warehouse in South East Hampshire.
CoStar understands that PFS, based in Irving, Texas, is paying a similar rent to that paid by Amazon, which was £9.80 per square foot, before it vacated the property. PFS has signed a 10-year lease.
In October 2020, Amazon committed to a five-year lease at Radial 27 due to its strategic placement between Southampton and Portsmouth. That contract had a two-and-a-half-year break clause in March 2023, which it exercised. Wholesaler Palmer & Harvey originally occupied the building.
PFS's decision to expand its footprint comes amid a "growing demand" for e-commerce order fulfillment services in the region, in addition to the growth of its clients at its existing Mountpark hub in Southampton.
Radial 27, located at 11 Barnes Wallis Road, is a self-contained, double bay warehouse unit built in 1990 and owned by Urban Logistics REIT. It provides first floor office accommodation at the front of the building, 9,984 square feet, and industrial accommodation comprising 60,325 square feet.
The circa four-acre site was bought by Urban Logistics REIT in December 2020 for £10.9 million, representing a 6% net yield, and was part of a larger deal for a total of three warehouses, worth a collective £22.9 million, according to CoStar data.
The main entrances to the site are accessed off Barnes Wallis Road, with the site 1.1 miles from Junction 9 M27, a strategic South Coast distribution and industrial location. Portsmouth and Southampton are five and nine miles way respectively, while Southampton International Airport and Southampton Airport Parkway mainline railway station is eight miles away.
PFS said the new facility would provide additional support for existing clients and create space for new client solutions. "Amid various supply chain network disruptions stemming from the UK’s separation from the European Union, many European clients and prospects have sought risk-mitigating strategies with in-country order fulfillment in the UK," it said.
Its chief operating officer and president Zach Thomann said: "Expanding our footprint in the UK is key to our long-term growth strategy and will meet the needs of our strong sales pipeline in the region.
"More clients and prospects are desiring a multi-node order fulfillment strategy complemented by a brand-centric solution in each geography. We plan to design the new facility in Fareham specifically for health and beauty brands, while also implementing new sustainability initiatives.
"Creating opportunities to serve brands in our largest product vertical while advancing our sustainability goals is a win-win situation. PFS is a premier provider for brands searching for scalable, branded fulfillment operations, and we are excited to expand our operations in the UK to serve more clients."
M1 Agency and Lambert Smith Hampton are joint letting agents at the property. CBRE acted for PFS and the landlord was represented by LSH.