Towards two million smart square meters

'Location matters to us'

New distribution centers are developed and built in-house by real estate developer DHG, according to the SMARTLOG concept. These are DCs with set specifications in sought-after locations. The sustainable distribution centers are designed to accommodate a variety of types of users. DHG has already realized more than 1.3 million m² of distribution centers according to the SMARTLOG concept since 2015. "Good locations, flexibility and sustainability is what the sector demands," Hans van Driel and Richard Elich tell us.

DHG (David Hart Group) was founded in 1995 by its namesake and CEO, with the purchase of its first warehouse in the Rotterdam region. In addition to DCs, the extensive portfolio includes terminals and offices, mostly in (the immediate vicinity of) Dutch seaports. Currently, approximately 600,000 square meters of SMARTLOG is under development at various locations in Hellevoetsluis, Moerdijk, Rotterdam and Zaandam, with branches in Vlissingen and Lelystad soon to follow. "DHG has traditionally been a developer of logistics real estate," says logistics director Van Driel. "Nowadays we are also investors. We develop regardless of whether tenants are already in the picture, because we believe in the location, and deliberately keep the new DCs in our own portfolio."

Good hinterland connections

The sites are mostly redeveloped sites, but also greenfields. Van Driel: "Finding good locations in the Netherlands is becoming increasingly difficult, we are certainly willing to invest in the redevelopment of sites. The location counts for us." 

The Port of Rotterdam, for example, is used by companies from the U.S. and the Far East because the hinterland connections are good. Elich: "In a stable country with manageable regulations. Partly for this reason, DHG is only developing in the Netherlands for the time being, although the commercial department is itching to see the possibilities. But the differences in regulations between European countries are great, and developing market expertise takes time."

As business development director, Elich focuses on acquiring tenants, acquiring land positions and sale & lease back constructions. He was previously CEO of Business park Trade Port Noord Venlo and commercial director of Greenport Venlo. At DHG, he finds the Rotterdam mentality of follow-through and innovation. "The SMARTLOG concept is always sustainable, gas-free with solar panels on the roofs to generate its own electricity, and has maximum flexibility in terms of working heights and layout, making it suitable for different types of tenants. Good locations, flexibility and sustainability is what the industry demands."

Flushing-East

The new sites in the port of Vlissingen-Oost are exponents of that approach. DHG has signed a lease agreement with Verbrugge and TM Edison for the lease of over 120,000 m² of land at its trimodal terminal totaling 54 hectares. Earlier this year, DHG already concluded a lease agreement with multimodal shipper Verbrugge for the lease of 100,000 m² of land for the storage and handling of breakbulk. The 120,000 m² of this new lease will be occupied by TM Edison, as subtenant. This consortium will use the land to build concrete elements to create the world's first energy island off the coast of Belgium.

The filling of this 120,000 sq. m. is in line with DHG's vision: a trimodal hub for both breakbulk and containerized goods, particularly focused on the energy transition. With the construction of the SMARTLOG distribution centers that DHG is developing here at its own risk, it is targeting the latter market, among others. Thanks to the high environmental category, the distribution centers are expected to be suitable for the storage of Lithium Ion batteries. "The demand for that continues to grow strongly anyway," says Van Driel. "In addition, Verbrugge has a barge shuttle service that allows containers to be loaded efficiently and at relatively low cost from the deep sea terminals in Rotterdam and Antwerp to Vlissingen. The road and rail connections are also excellent."

Lelystad Airport

In addition, this fall DHG signed an agreement with Ontwikkeling Maatschappij Airport Lelystad Almere to purchase a plot of over 19 hectares at the Lelystad Airport Businesspark (LAB). DHG has already acquired the lot and will soon start the development of approximately 160,000 m² of high-quality SMARTLOG distribution centers at its own risk. LAB is located in the middle of the Almere-Lelystad-Zeewolde logistics hotspot, at the intersection of national connections. In 2020, this location achieved third place in the hotspot election of Logistiek.nl. Elich: "We see excellent opportunities in Vlissingen and Lelystad for the development of high-quality logistics combined with unique multimodal opportunities, with maximum flexibility for tenants."