Croda to develop new distribution hub following LondonMetric warehouse purchase

Croda to develop new distribution hub following LondonMetric warehouse purchase

Croda is to develop a new distribution hub through a 20-year lease deal with LondonMetric Property, which has agreed to acquire a new 232,000 square foot distribution warehouse for £24 million and will fund the new site.

The British chemicals maker will rent the space from LondonMetric for £1.3 million per annum, with a forecasted yield on cost of 5.2 percent.

Croda is expected to invest a significant amount into an automated facility, with LondonMetric stating there was planning permission in place to erect a further 140,000 square foot in due course.

With construction expected to start imminently, the warehouse is forecasted for competition mid-2020.

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