Aberdeen Standard Investments’ AIPUT fund (Airport Industrial Property Unit Trust) has agreed a five year lease extension with Kuehne+Nagel for its South Cargo Centre at Heathrow Airport, securing the site’s pivotal role as a nationally-important facility for the import of pharmaceuticals and other medical products.
Kuehne+Nagel - the world’s second largest airfreight forwarder - is an established tenant of AIPUT, having operated out of the 208,000 sq ft South Cargo Centre for five years. GlaxoSmithKline is a key customer of the facility, which handles a significant share of the UK’s pharmaceutical imports. Kuehne+Nagel shares the South Cargo Centre with Do&Co and GE Aviation.
Heathrow is the largest UK import hub for pharmaceuticals and medical products, handling up to 41% by value of the UK’s total pharmaceutical imports. Kuehne+Nagel also operates AIPUT’s Perishables Handling Centre at Hatton Cross, a 72,500 sq ft state-of-the-art facility specifically designed to handle food air-freight.
The airport is currently handling up to 95 dedicated cargo flights each day - 14 times the number in normal times – although overall cargo volumes passing through the airport are significantly lower than usual due to the dramatic reduction in belly-freight carried by passenger aircraft.
Nick Smith, Fund Manager for AIPUT said: “Kuehne+Nagel is one of a number of AIPUT tenants and commercial partners at Heathrow that have responded magnificently to the unprecedented downturn in passenger traffic through the airport, often realigning their business operations to support the NHS in the most challenging circumstances. It’s great to see businesses vital to the operations of our leading airports, stepping up to the mark and proving the importance of the UK’s aviation industry to our national wellbeing, as well as to the future growth of UK plc.
“This new agreement with our valued partners Kuehne+Nagel, secures the future of this nationally-important air freight facility for years to come, making a major contribution towards ensuring that the UK’s vital access to global healthcare supplies is maintained.”
Other AIPUT facilities actively supporting the UK through the Covid-19 emergency include:
- dnata City East, Stanwell: dnata. AIPUT’s new 250,000 sq ft high-spec air cargo warehouse is playing a key role in the delivery of over 43m items of PPE to the UK scheduled to arrive between March and July, carried on dedicated cargo-pnly flights chartered by the Department of Health and Social Care and the NHS. Since the first charter, well over 150 tonnes of medial supplies and PPE has arrived in the UK. Regular cargo flights between Heathrow and Shanghai are each carrying an average of 16 tonnes of essential items needed to tackle the Covid-19 outbreak, including ventilators, face masks, face shields and visors, protective gowns, gloves and goggles.
- Radius Park, Feltham: - Agility, one of the world’s top freight forwarding companies, has turned its 55,000 sq ft unit over to the storage or pharmaceuticals for the NHS
- Central Park Estate – Nippon Gases: is using its 18,400sq ft facility to provide dry ice, normally used by the airlines, to the NHS
- Swissport, one of AIPUT’s largest clients are Heathrow, is working with FedEx and Royal Mail flying imports of perishable foods into Stansted
- World Duty Free, Gatwick: Recently furloughed delivery drivers are volunteering as drivers for the NHS, with the company donating sweets and chocolates to local care homes and hospitals
AIPUT manages over 2.1m sq ft of high-quality cargo warehousing serving Heathrow Airport, making the fund one of the airport’s leading landlords. Planning permission has recently been secured for two new warehouse buildings set to deliver a further 145,000 sq ft of airport-related warehousing serving Heathrow, divided between its Blackthorne Point site at Poyle, and dnata City East at Stanwell.
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Notes to Editors
- Aberdeen Standard Investments’ Airport Industrial Property Unit Trust (AIPUT) is an award-winning expert long-term investor specialising in industrial property on and near major UK airports. AIPUT is the only specialist airport-focused industrial fund in the UK for institutional investors. AIPUT aims to deliver a strong ESG (Environmental, Social and Governance) performance throughout its portfolio, with a strategic target to achieve carbon neutrality by 2025. The fund has successfully achieved GRESB Green Star status in each of the last five years.
- The fund, which celebrates its 15 year anniversary in March 2020, manages a prime portfolio of properties providing high-quality and customised warehouse and logistics space:
- c.£700m assets under management (@ February2020)
- 20 assets, amounting to c2.5m sq ft
- 2.1m sq ft of assets at Heathrow, making AIPUT one of the largest landlords around the airport, serving the evolving needs of the airport and the air-freight related industry
- Assets at London’s three major international airports: Heathrow, Gatwick and Stansted
- Target clients and investors – pension funds & expert institutional investors
About Aberdeen Standard Investments
- Aberdeen Standard Investments is a global asset manager dedicated to creating long-term value for our clients. With over 1,000 investment professionals, we manage £486.5 billion* of assets worldwide. We have clients in c.80 countries supported by over 40 offices globally. This ensures we are close to our clients and the markets in which we invest. (*as of 31 December 2019)
- We are high-conviction, long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance.
- Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange.
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