Goodman Group is to more than double the existing distribution space in Mönchengladbach, western Germany, used by fashion retailer Esprit.
The addition of 80,000 m2 will create a 130,000 m2 facility, which Goodman says will be one of the largest fashion logistics centres in Germany on completion in May 2017. The property will be operated by the Fiege Group.
'The additional capacity at Regiopark Mönchengladbach will enable us to bundle existing logistics services at a single location and to support the strategic repositioning of the company and its future growth,' said Jose Antonio Ramos, chief commercial officer of Esprit. 'The new facility and the additional space at this location play a critical role in the sustainable growth of our operations and the execution of our vertical and omni-channel business model. Goodman has earned our trust and repeat business due to its excellent property management of our existing facility and its reputation for quality property development,' Ramos said.
The project is being undertaken by Goodman's flagship European real estate investment vehicle, Goodman European Partnership (GEP), whose portfolio already includes the existing 53,000 m2 warehouse for Esprit.
The facility at Regiopark Mönchengladbach is located just one kilometre from the A61 and has good links to the A44, A46 and A52 motorways. The location also has convenient connections to the trans-regional road network, enabling the fast and reliable handling of goods to Germany and Europe, particularly to the Benelux countries.
Textile and fashion hub
Due to its strategic location, Regiopark Mönchengladbach has in recent years evolved into a significant hub for textile and fashion logistics in Europe. Goodman has developed a 130,000 m2 distribution centre for Zalando and a 22,500 m2 logistics centre for logistics services providers Logwin and Vetten, who are jointly serving a fashion retail customer.
Esprit will continue to use the expanded logistics centre as its pan-European storage and distribution centre and will consolidate existing operations from other locations to manage goods returns, never out-of-stock products, material relocation and its outlet business. The expansion of the property is part of Esprit's overall strategy to implement a faster and more cost-effective product development and supply chain management process.
Logistics service provider Fiege will continue operating the facility and will increase the total number of employees at the site to 750. The company has managed logistics services at this location since the completion of the first building five years ago. Fiege has a 16-year relationship with Esprit, providing various logistics services for the retailer, such as supplying Esprit stores and wholesale customers.
