The logistics company Stobart is to sell the new Northern distribution centre for Tesco's fresh operations at Widnes, Cheshire, whilst securing a long-term distribution contract with the retail giant from the site.
Stobart Group announced it has agreed to dispose of part of its Inland Ports asset to Legal & General Assurance (Pensions Management) Limited, for £61m - rising to £62.5m on the satisfaction of further conditions.
This includes the new 528,000 square-feet distribution centre, developed by Stobart, which is to be completely powered by renewable energy generated from food waste through a partnership the PDM Group.
Tesco leased the centre, due to become operational this summer, to provide increased capacity to service its growing network of stores in the North West, whilst closing its distribution centre in Middleton, Greater Manchester.
Meanwhile, Stobart also announced it expects to increase the throughput of the Inland Port terminal (currently only 50% utilised) when the site is fully operational and when the existing Valencia fresh produce rail service is extended to Widnes.
It said that this next phase of the Stobart Rail service will allow Tesco to transport its fresh produce from Southern Spain to Northern England by rail, delivering significant environmental benefits.
Andrew Tinkler, chief executive of Stobart Group, said: “This asset disposal illustrates a fundamental strategy of our Group which is to invest in assets in order to develop existing and new customer relationships and then realise the value of the asset, at a profit, to reinvest elsewhere in the business.
“At Widnes this has enabled us to gain a long-term distribution contract for Tesco and to increase the utilisation and support development of the next phases of the inland port facility.”
Source: foodbizdaily.com
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