Future for Industrial Development in Park Royal Mike Cummings, Regional Director, Park Royal and London 12 th May 2015
Future for Industrial Development in Park Royal
Mike Cummings, Regional Director, Park Royal and London
12th May 2015
SEGRO: Europe’s leading industrial REIT
2 * including joint ventures at Group share 31 Dec 2014
1250+ customers 5.8 million sq. m of lettable space £4.8 billion* property portfolio
500+ hectares of development land
£266m annual rental income
The Importance of Park Royal
• 2,000 businesses, fragmented ownership, surrounded by chimney pots
• Employing 31,000 direct jobs (circa 24,500 indirect)
• Employment pattern – 17% micro, 23% small, 18% medium 42% large
• 51% employed locally
• 18.7m sq. ft. of industrial floor area
• 6% vacancy rate*
6
*December 2014 (Focus)
Park Royal – Prime location for urban logistics and local service industries
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TV, film and media Manufacturing & processing
Urban logistics Local commercial services
Contributing to a world class industrial location
• From 2013 – 2016, SEGRO will have delivered c. 500,000 sq. ft. of new industrial space
• 4 new schemes coming forward
• Flagship Origin Business Park completes in December 2016
• 65% let already let (237,000 sq. ft.)
• JLP, Ocado and Mash Purveyors
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Tudor Gate – Completed in August 2013
Origin Business Park
Looking ahead: Park Royal is well positioned for growth?
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Structural drivers of demand for new space in Park Royal ! London’s growing population
! Trend towards outsourcing, local distribution and growth in support services
! Great road access to the West End
! Changing operational requirements from occupiers is driving demand for new
modern industrial space ! On line and convenience shopping – The Centre for Retail Research predicts
online retail sales will rise from 12.7% (2013) to 21.5% by 2018
! The regeneration of London will drive the demand for new industrial floor space
….but Park Royal infrastructure needs enhancing