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Goodman and METRO LOGISTICS celebrate key development milestone of largest logistics centre by Goodman in Europe

Monday, 03 July 2017

Global property group Goodman is developing its largest logistics property in Europe to date, with a 235,000 sqm logistics centre for METRO GROUP in Marl, Germany. The property is due to be completed in early 2018.

The new development will be the largest logistics hub of the METRO GROUP, one of the world’s leading wholesale and retail companies. With a total area of 235,000 square metres and generating over 1,000 jobs, it will be the largest logistics centre Goodman has developed in Europe to date. 

Together with Carsten Löcker, Member of parliament of North Rhine-Westphalia, local authority Chief Executive Cay Süberkrüb, Mayor Werner Arndt and around 100 other guests, the two companies celebrated the topping out of the new facility today.

The new logistics facility in Marl will play a central role in METRO GROUP’s new logistics strategy and will combine the central German warehouses of real,- SB Warenhaus and METRO Cash & Carry in one location. The group’s own service company, METRO LOGISTICS, will be responsible for the logistics, undertaking efficient distribution of over 20,000 different products from the food sector and several hundred non-food items. As a result of the centralisation, METRO GROUP will achieve greater concentration of logistics and benefit from greater efficiency in storage and transport as well as shorter transport routes. 

“With the new logistics strategy, we are significantly improving product availability, quality and freshness for our customers. We are also enhancing our competitiveness by building one of the most modern logistics networks in Germany. To implement this strategy, we placed high demands on an intelligent property concept and its reliable development. Goodman has committed to delivering the property for us within an extremely tight timeframe, which will enable us to achieve these objectives,” highlighted Thorsten Sega, Director Central Logistics and Logistics Network Strategy at METRO LOGISTICS Germany GmbH.

Sustainable property for efficient logistics – today and tomorrow
The new development, which is managed by Goodman, will comprise two buildings with areas of 83,000 sqm and 152,000 sqm respectively. In total, the site will have around 225,000 sqm of storage space, complemented by an area of 10,000 sqm for offices and social areas. The buildings meet the highest quality standards of Goodman’s premium properties. For example it offers a hall height of 12 m, approx. 28,000 sqm of cold storage and 406 loading gates for efficient handling of goods. Because of its sustainable design, which includes LED lighting throughout the facilities, the property is expected to receive a gold certificate from the German Sustainable Building Council (DGNB). In consultation with METRO, Goodman has also designed the property to have a flexible configuration so that it can cater to the upcoming introduction of an omnichannel distribution strategy, which is being planned by METRO GROUP.

"When selecting a real estate partner, we specifically searched for a company that has experience with projects for retail logistics of this size. For this reason, we chose Goodman as one of the world's leading companies in its sector," added Christian Mielke, Director Region Germany, METRO PROPERTIES GmbH & Co. KG., who took over the search for the site and the selection of the ideal real estate development and investment partner.

Complex brownfield development
Due to significant land constraints for developments of this size in Germany, Goodman is also developing the new logistics centre for METRO GROUP partly on a revitalised industrial or ‘brownfield’ site. The property group acquired the site for the new development from Evonik, one of the world’s leading specialty chemicals companies. So-called brownfield conversion is an important means to reduce consumption of green space and provide customers with properties in key locations. Goodman employs a range of specialists to execute these technically demanding developments. 

“Retailers like METRO GROUP are key customers for Goodman and we have developed over 1.14 million sqm logistics area for the retail sector in Continental Europe in the last few years. However, because of its complexity and the size of the property, the project for METRO GROUP is unique,” said Christof Prange, Head of Business Development at Goodman in Germany. “As an experienced property partner, Goodman has developed a state-of-the-art logistics centre which will increase the efficiency of METRO GROUPS logistic in a short time. We thank the project partners for their contribution to this outstanding collaboration.” 

Logistics location North Rhine-Westphalia
“With 314,000 employees, logistics is the second largest sector in the state of North Rhine- Westphalia and one of the leading growth sectors in the state. Our goal is to turn North Rhine- Westphalia into Europe’s top logistics location. That is why we are particularly pleased that METRO GROUP and Goodman selected Marl as the location for one of the European central warehouses of METRO GROUP. It is also nice to see how old industrial areas are given new and future-oriented benefits through such innovative approaches”, said Carsten Löcker, Member of the parliament of North Rhine-Westphalia. 

With a share of over a fifth of the total German gross domestic product, North Rhine- Westphalia is one of the most important economic regions in Germany and Europe. Locating its new logistics hub in the region, METRO GROUP benefits from a network of 2,200 kilometres of motorway, linking all the larger cities in the federal state and connecting it to the European motorway network.

“In light of the structural change from heavy industry to an economy with different strong pillars which the Ruhr region is currently undergoing, the logistics sector offers local people a new growth perspective. Its dense transport network and the high availability of well qualified workers make the northern Ruhr area an attractive location for major companies like METRO GROUP to base their business,” added Cay Süberkrüb, local authority Chief Executive for the district of Recklinghausen. 

“The establishment of the new METRO GROUP logistics centre is a big win for the town of Marl. We are happy that be have been able to offer METRO GROUP an adjacent area at the unique size of approximately 600,000 sqm to make this project possible. “It is very important to create the urgently required low-threshold jobs in the location of Marl,” Marl town mayor Werner Arndt emphasised. “This positive stimulus,” Arndt said, “will benefit not only Marl but the whole region.”