Panattoni, the privately owned industrial developer, has confirmed a huge letting to supermarket chain Tesco at Panattoni Park Aylesford in Kent.
CoStar News reported at the end of last month, read here, that Tesco was about to move into a more than 600,000-square-foot facility in the area after opening a consultation on proposals to close its 265,000-square-foot Snodland distribution hub on Hays Road.
Panattoni confirmed in a statement on its website this morning that it had completed the construction of a large build-to-suit facility for Tesco at its Aylesford scheme that that will support the supermarket's supply chain efficiency and ESG goals.
The warehouse, called Aylesford 750, has a 300,000-square-foot chilled section, a 100,000-square-foot freezer area and EV charging infrastructure to support the company's transition to an electric HGV fleet.
Panattoni confirmed the facility has achieved BREEAM ‘Excellent’ certification and EPC ‘A’ rating. The deal follows news this morning that Tesco paid Supermarket Income REIT £63.5 million for a circa 107,000-square-foot superstore in Newmarket, West Suffolk, that is was leasing from the group.
Tony Watkins, head of South East & London development at Panattoni, said in a statement: "The 621,000-square-foot facility is the culmination of our vision for the project to deliver cutting-edge operational capabilities for Tesco, creating jobs and generating benefits for Kent.
"This facility will also bring amenities such as retail, dining, and services, while driving investment in logistics and local businesses.
He added: "We are incredibly proud of what we have achieved at Panattoni Park Aylesford. This development showcases our commitment to sustainability, innovation, and collaboration with tenants such as Tesco, the local community, and stakeholders. Together, we have delivered a facility that sets a new benchmark for modern logistics."
Tesco's move chimes with a trend among big-box warehouse occupiers to secure Grade A warehouse accommodation to achieve their environmental targets, improve working conditions for staff and use modern technologies, like automation. CoStar News also reported this month that Waitrose is looking for a circa 400,000-square-foot warehouse in Avonmouth.
Stuart Moffat, head of development in the Distribution team at Tesco, added: "We have worked with Panattoni over the past few years to develop a bespoke facility that meets our operational needs while supporting our distribution and sustainability goals.
"This built-to-suit facility is particularly vital for us, incorporating cutting-edge ESG features, including 90,000 square metres of solar panels and EV charging infrastructure that we have invested in to support our vehicles and staff."