PLP establish new UK logistics partnership
Peel Land and Property Group and Macquarie Capital today announced the launch of a new UK logistics management platform operating under the PLP brand. The joint venture will be seeded with capital from both partners and will target the development of modern logistics facilities for long-term ownership.
PLP’s aim is to become a leading national logistics business, providing best-in-class solutions for occupiers. In due course, PLP will seek institutional capital investment to support future growth with the ambition of reaching £1 billion of managed assets.
Peel has a long history of developing and operating real estate across the UK, including on its extensive land holdings, much of which is in close proximity to major transport infrastructure. PLP will enjoy privileged access to this land bank, which features sites suitable for immediate occupation, as well as major strategic locations.
The recently announced 280,000 square feet (26,000 m2) Port Salford development occupied by Culina Logistics will be the partnership’s first property. Positioned next to the Manchester Ship Canal, M60 and M62 motorways, Port Salford will become the UK’s first tri-modal inland port facility and distribution park accessible by road, rail and short-sea shipping. Port Salford will be capable of meeting occupational requirements of up to one million square feet (93,000 m2) across 150 acres (60 hectares) of consented land within the first phase.
PLP has also submitted plans for a 175,000 square feet (16,000 m2) speculative development at Liverpool International Business Park. Both schemes are well positioned to benefit from Peel Ports’ £300m investment in the new Liverpool2 deepwater container terminal at the Port of Liverpool, which is expected to drive additional demand for logistics space in the North West.
The development of Port Salford and Liverpool International Business Park reflects the growing demand from modern occupiers for larger and build-to-suit facilities. This demand is being driven by the revolution in the e-commerce sector; the UK’s resurgent manufacturing industry, and a move to on-shoring.
PLP’s land assets in strategic locations ensure the partnership is well placed to respond to this continuing evolution in the logistics sector. The new partnership, which is subject to customary merger control clearance, will initially focus on the existing c.250 acres (c.100 hectares) of consented developable land. Based on current configurations and market needs, this could deliver in the short term approximately five million square feet (465,000 m2) of logistics capacity across multiple sites, including Liverpool International Business Park, Port Salford, Robin Hood Airport, and Knowsley.
Macquarie Capital’s real estate business has a strong track record in the logistics sector globally, operating as a financial adviser, capital arranger and principal investor.
James Whittaker, Development Director for Peel Land and Property Group, said: “This exciting new partnership combines the complementary skills and expertise of Peel and Macquarie. Our shared vision is that PLP will evolve into a full service enterprise undertaking the development, ownership and management of logistics assets alongside institutional capital partners.”
Steven Underwood, Chief Executive of the Peel Group, added: “The PLP platform aims to leverage not only our extensive land bank but also the Peel Group’s wider links to the supply chain and logistics via our longstanding and ongoing involvement in the port, airport and retail property sectors in the UK”.
Jonathan Harris, Macquarie Capital Head of European Real Estate, said: “We are delighted to be working alongside Peel on this significant initiative which will benefit from our considerable experience in advising and investing in logistics real estate businesses in the UK and globally.”