Industrial property developer Prologis has acquired the former head office of Vauxhall Motors, as well as a neighbouring site owned by a private commercial company, in a multimillion-pound deal agreed through Colliers.
Prologis is to redevelop the 17-acre site in two phases, providing approximately 300,000 sq ft of purpose-built space suitable for warehousing, logistics, and manufacturing. The final scheme will comprise of a range of unit sizes, with spaces suitable for SMEs.
The site is located one mile from Luton airport and 30 miles from London, and in close proximity to major road and rail links, including the M1. The developer is also considering sustainability in its scheme, with extensive landscaping of the site planned as well as transformation of the overgrown River Lea which bisects the site into a “green corridor” with the potential for public access. Prologis also plan to focus on providing new employment opportunities for the local community.
Ollie Bycroft, vice president in the leasing and development team at Prologis UK, said: “This is an important investment both for Prologis and for the local economy; we’re pleased to be following in Vauxhall’s footsteps and continuing to provide employment opportunities in Luton. Because of the site’s location, we’re very conscious of the need to integrate the development into the local community and, alongside jobs, we’ll be ensuring that the scheme provides added sustainability and environmental benefits too.
“Luton is an incredibly important location for businesses large and small who want well-connected sites for their logistics and distribution operations, in close proximity to key markets, such as London. The logistics sector is booming and we’re meeting that demand by providing buildings in the right locations, with the right connectivity.”
James Burke, director in Colliers’ Land Development team, managed the sale. He said: “Due to changes in their business operations, both landowners were looking to relocate which allowed for the two properties packaged together. Over the last 12 months we’ve seen a particular boom in demand for industrial land to cope with the increased consumer purchasing of food online as well as ecommerce. Professional investors like Prologis recognised the opportunity of international cargo transport, alongside strong domestic links that this site had to offer.”
Jaspal Singh, Real Estate Manager for Vauxhall Motors added: “Our Company has a long history with the Borough of Luton, and we remain connected within the area with our manufacturing plant and new headquarters in Toddington. It is the end of an era seeing our former HQ site closing but we are equally delighted that Prologis will redevelop the site and it will attract further enterprise and employment to the area once their scheme is completed. We wish Prologis every success at the site.”
