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Business & Economy

Parcel courier DPD invests in new North East base

Parcel courier firm DPD has invested in a new base on Gateshead’s Team Valley Trading Estate as part of a nationwide expansion.

The 37,584 sq. ft site was formally occupied by WH Smith and is part of the parcel giant’s mission to invest £60 million into creating 15 new regional depots across the country.

Plans for the Team Valley location will allow DPD to expand its next-day delivery service across the North East.

The move comes at a significant point, as online sales have risen as a result of more people shopping at home during the pandemic.

Louise Ferguson, general manager – property at DPDgroup UK, said: “We are experiencing the biggest boom in online retailing in the UK’s history and we are making an unprecedented investment in our infrastructure to ensure we can continue to meet the high levels of demand for our services.

“We are delighted to have opened a new depot in Gateshead’s Team Valley. Its location is incredibly well connected and will make the ideal hub for our delivery drivers who need to travel across the region quickly and easily.”

The Team Valley site is owned by commercial property investment and development company UK Land Estates, while commercial property agents Naylors Gavin Black LLP and Knight Frank oversaw the new letting.

Mark Proudlock, partner at Knight Frank, said: “With the coronavirus pandemic forcing many of us to shop from the comfort of our own homes, it is no surprise that we are seeing an unprecedented demand from third party logistics providers, such as DPD, and online retailers that are looking for extra storage space across the region.”

Keith Stewart, partner at Naylors Gavin Black, said: “This year will break the record for the most uptake of warehouse space across the UK.

“This has resulted in a lack of good quality supply in prime areas like Team Valley and we are likely to see steady growth in the sector in 2021 as businesses further adjust to consumer demand.”

David Gibbs, commercial director at UK Land Estates, added: “This particular site was re-let within three weeks, clearly highlighting the popularity of larger spaces like this in the area.

“Our mission has always been to provide businesses with property solutions that meet commercial needs.

“Because of this incredible growth in this sector, we are investing heavily in our portfolio of estates and development land to ensure that we can continue to deliver suitably sized and well-connected spaces.

“To this end, we have had planning consent granted on two sites on Team Valley at Eighth Avenue and Kingsway North with capacity to accommodate units from 25,000 to 90,000 sq. ft.”