Firethorn Trust Northampton

Following our recent Logistics & Sheds Development Conference we’ve been speaking exclusively with one of the event panellists – Peter Mather, Partner at Firethorn Trust. Peter is an executive board director at the firm, responsible for sourcing and executing new real estate investment and development opportunities across the UK. Focused on the delivery of Firethorn’s growth strategy to invest substantial capital and resources in developing best-in-class real estate – and therefore he’s perfectly positioned to share his insight into the marketplace…

Q: Firethorn focuses on delivering mid-box warehousing, what led to the emergence of this focus?

When we set up Firethorn three years ago we wanted to focus on an area where we could drive growth, and we identified the midbox logistics space as a market segment where supply wasn’t meeting, what we saw was, increasing demand. That has turned out to be the case. [emaillocker id=”71749″]

Whilst we are open to opportunities in other sectors, midbox logistics is very much at the heart of our business – we concentrate on 20,000-300,000 sq. ft. as we believe that, in terms of warehousing, this is where the width and depth of demand is the greatest. There is also the distinction between Grade A and Grade B/C units – the majority of current demand in the market is for sustainable high-quality developments, rather than older, second-hand logistics units that are likely to have compromised specifications. 

Firethorn is currently delivering c.1m sq. ft. of speculative logistics units across the UK, with several schemes recently announced, including a c360,000 sq. ft. development near Northampton, where work has just started on site.

Q: You’ve started work on Northampton Cross which will include sustainable technology including rooftop solar and car charging points. How important is sustainability in new logistics developments?

With the explosive growth of digital retail, and the requirement for UK-based inventory, the sector has faced an increased need for new warehousing solutions. At the same time, planners, occupiers and workers are demanding more sustainable, eco-friendly and fit-for-purpose logistics spaces. These factors have created an immediate focus and significant opportunity for emerging and ambitious developers like Firethorn to accelerate at a faster pace.  

New construction offers the ideal platform to make a real contribution towards advancing the sustainability agenda, as green practices can be embedded right from the outset, with sustainable initiatives included at every stage of the build and development lifecycle to minimise environmental impact.

Where the site is located will minimise transportation time; raw materials that are alternative and sustainable will help to reduce the carbon footprint of the building; lighting, water and waste management strategies can improve energy efficiencies; and enhanced cycle routes, green areas and footpaths can help to promote employee health and wellbeing.

Q: How has the recent push towards sustainability altered the kind of materials used on logistics developments?

With sustainable development at the heart of what we do, it is really important that we work with the best sustainability consultants on each of our schemes. This allows us to create an individual strategy for each project, which carefully assesses the carbon footprint of the space we are creating and the materials we are deploying.

We work closely with our contractors to procure resources at a local level wherever possible, and as the development of new construction materials comes to market, we will always look to use the most sustainable options, such as low carbon cement.

Liaising closely with local stakeholders, we can also maximise the ecological potential of our developments by planting trees for carbon off-setting. In the event that space isn’t available to fully plant in a development site, these relationships help us to find local landowners who will make plots available for tree planting and biodiversity enhancements. Where we can’t offset locally, we’ll do it through UKGBC recognised schemes.

Q: How is Firethorn embracing other forms of innovation within their projects?

Our innovation focus is driven by sustainability and future-proofing the spaces we are creating. This ranges from the use of low carbon materials, to incorporating solar panels and rain water harvesting into the design, as well as provisions of EV charging points for both cars and lorries, and creating welfare and amenity facilities that are surrounded by a progressive biodiversity strategy.

Q: You’re developing the ambitious Quay House project with Rockwell, how did Firethorn come to work on this landmark scheme and how is it making it unique?

The Quay House project was our very first development. Rockwell’s ambitious approach was closely aligned to the way we work, and by combining our expertise we were able to create a really exciting vision. We planned from the outset to enhance the underused space in a way that would allow the surrounding region to prosper. The scheme has the advantage of a prime waterfront location, so by adding 290,000 sq. ft. over 40 storeys and upgrading the dockside facilities, we are able to deliver this landmark scheme to its full potential. The Quay House development will be a magnificent space that will draw in visitors, while creating a public realm to benefit the local community. When complete, the high-specification development is expected to create hundreds of jobs and drive £35m of visitor spend to the local economy, with an additional £18m each year to the wider supply chain.

Q: You have an occupier-led approach, how does this affect the developments you lead on?

We want to make sure that our occupiers can access resources, infrastructure and connections that will ultimately drive their efficiency and growth. By staying at the leading edge of market trends and incorporating both the current and future needs of our occupiers in the earliest stages of planning and design, we can ensure that every aspect of the development is suitable for their short, medium- and longer-term business requirements.

As seen over the last 12 months, it can be difficult to confidently predict and prepare for the impact of external events on our supply chains – Brexit has driven a demand for locally sourced supplies, whilst Covid-19 has driven ecommerce growth five years forward in the space of five months.  BNP recently reported how warehouse take-up increased by 73% last quarter compared to 2019.  So, the key is to ensure our spaces are primed and ready to go, but they are also forward-thinking and modern, offering a degree of flexibility for future occupiers.

Q: How was Firethorn’s experience at the recent Logistics conference?

The pandemic has forced us to professionally network and contribute to industry events in a completely different way, and, although I’m sure most of us would still prefer to be in a face-to-face environment, the speed and efficiency with which organisations such as BEN have been able to provide high quality opportunities for the industry to connect and share experiences, and discuss opportunities and challenges, has been hugely appreciated. It was great to have the chance to speak to an engaged audience about our business, and to hear from others across the sector.

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