AIPUT signs landmark pre-let agreement with dnata at Heathrow

- Group

SWIP (Scottish Widows Investment Partnership) today announces that its Airport Industrial Property Unit Trust (AIPUT) - a specialist owner and manager of airport related industrial warehouses - has signed a landmark pre-let agreement with dnata for a major new cargo warehouse hub at London Heathrow Airport.

dnata, a leading global air services provider, has committed to take a premium cargo warehouse hub of 13,146 sq m (141,500 sq ft) on Northumberland Close to service their international carriers. This new scheme, which compliments dnata's existing facilities in the area, will be Heathrow's largest 'off-airport' pre-let to a cargo and aviation related operator in the last 10 years.

The former Blackburn & Court Farm Estate is a prime site opposite the Heathrow Cargo Terminal and British Airways World Cargo Centre, and is a strategic asset for AIPUT. The pre-let is the first phase of the development of the park, and subject to planning, work should start later this year. There is the potential for a further warehouse facility of 6,500 sq m (70,000 sq ft) that could be developed on the remaining 1.4 hectares (3.5 acres).

Nick Smith, Fund Manager for AIPUT within SWIP's Real Estate team, comments:
“SWIP is delighted and proud to be announcing this significant transaction alongside our established and valued customer dnata. This is a huge commitment for both AIPUT and dnata given the backdrop of these adverse economic conditions, and is testament to the perfect match of our ambitions and vision to deliver an outstanding scheme on this global stage.

“This project is indicative of how AIPUT is dedicated to delivering world-class solutions and service excellence to our customers and delivering an exceptional asset for our investors. We look forward to forging a deeper and stronger relationship with dnata, and to strengthen London Heathrow as a leading international airport and cargo destination.”

Paul Cole, Interim Chief Executive Officer of dnata UK, comments:
“This investment marks a step change in dnata's cargo capacity in the UK market. Our willingness to invest in new facilities is a sign of our commitment to London Heathrow Airport and will be the vehicle for our future growth in this important market.”

AIPUT was represented by Canmoor Developments, Dowley Turner Real Estate and Dundas & Wilson. dnata was represented by Lambert Smith Hampton and Wragge & Co.

July 2012