Prologis agrees deal with Chinese retail giant

Ecommerce logistics provider Cainiao, part of Alibaba Group, is expanding its operations in the UK through a new 150,900 sq ft facility near Daventry.

Sun Beibei, vice president of global supply chain at Cainiao, said: “By signing a 10-year lease at Prologis Apex Park, we are making a clear, long-term commitment to the UK market. This significant investment reflects our confidence in continued growth and reinforces the stability and reliability of the logistics services we deliver to customers across the region.

“Prologis Apex Park offers the location, specification and flexibility we need to support our continued growth in the UK. The ability to move quickly through leasing and into a facility that is already optimised for high-volume operations was a key factor in our decision. We look forward to working with Prologis as we expand our network.”

The refurbished DC4 unit at Prologis Apex Park came back to the market featuring advanced LED lighting, a solar PV array and EV charging infrastructure, resulting in an EPC A rating.

The 150,900 sq ft warehouse offers wide aisle racking providing 20,000 pallet capacity. This allows Cainiao to move in quickly and handle high-volume operations from day one.

Tom Price, leasing director at Prologis UK, said: “Cainiao’s decision to locate at Prologis Apex Park reflects the strength of the Midlands as a core logistics location, as well as continued investment from Chinese ecommerce businesses into the UK. As an existing global customer, we were able to move quickly on commercial terms, enabling this transaction to complete.”

The letting brings Prologis Apex Park to full occupancy of existing units, following the recent leasing of DC3 to DHL. The park is home to major global customers including CEVA Logistics, XPO Logistics, Cummins and Hankook.

A final development opportunity remains at the park, DC11 offering a 91,000 sq ft build-to-suit unit with full planning consent.