LPP leases from Panattoni

Panattoni will once again provide e-commerce space for the Gdańsk-based company LPP – the largest clothing manufacturer in Central and Eastern Europe. The owner of the Sinsay, Cropp, Reserved, House and Mohito brands will occupy approx. 64,000 sqm within two buildings at Panattoni Park Tricity South II and will begin operations in the facilities as early as April 2022. The investment will be prepared for processing online orders as well as handling returns. The warehouse's location near ports and key road junctions will allow for reaching numerous European markets.

E-commerce needs a trusted partner. Panattoni will once again provide e-commerce space for the LPP group. The developer will prepare nearly 64,000 sqm within Panattoni Park Tricity South II. The demand for a new warehouse is a natural result of the high dynamics of online sales of the owner of the Sinsay, Cropp, Reserved, House and Mohito brands, which in the second quarter of the 2021/22 financial year grew by nearly 30% y/y and now accounts for 22% of the company's revenue. At Panattoni Park Tricity South II, order picking and returns processing will be carried out. The company will use two of the park's facilities, which will be connected by Panattoni with a special link. The developer will also prepare combi-docks that will handle both small delivery vehicles and trucks. Furthermore, it will ensure increased access to daylight in the picking zone. Previously, in 2018, LPP leased 30,000 sqm at Panattoni Park Gdańsk III.

"The growing interest of our customers in e-commerce shopping and the progressing digitalization of retail have led us at LPP to strongly focus on the development of warehouse space dedicated to online sales. Our decision to choose a facility at Panattoni Tricity South II was not accidental. Our existing cooperation with the developer and its extremely flexible approach to our needs were the main factors that prompted us to sign another contract. At the moment, this is our largest warehouse lease contract dedicated to e-commerce operations. The facility will increase our current Fulfillment Center warehouse potential by over 30%" - explains Sebastian Sołtys, Logistics Director at LPP.

The location at Panattoni Park Tricity South II will allow LPP to serve numerous foreign markets. The distribution center is located near the A1 motorway, as well as close to key national roads (S6 and S7), which allows for efficient access to the western, southern, and eastern borders. Additionally, the town provides access to a railway network that connects it with Gdańsk, Warsaw, Bratislava, and Vienna. A natural advantage of this location is also the proximity of the Port of Gdańsk, which will be indirectly used by the tenants. It handles goods arriving from all over the world – including China, the USA, Singapore, and a dozen or so European countries. –

„Sales of the LPP group in foreign markets already account for over 60 percent of revenue, which is why the expansion of infrastructure that will allow for efficient service of these directions is becoming natural. In recent years, Poland has become a very competitive market in the context of international e-commerce services. Foreign companies have noticed this, but Polish companies also benefit from it, such as LPP, which can serve numerous European markets from a facility leased almost at home – in Gdańsk”. – says Martyna Sochaczewska, Senior Leasing Manager at Panattoni and adds: - „I am glad that a domestic company that has achieved international success has trusted us again”.

Panattoni Park Tricity South II is a logistics park consisting of two class A warehouse halls with a total area of approx. 75,600 sqm, of which 26,000 sqm has been delivered so far. The complex offers the lease of space adapted to both warehouse and production processes. The investment is equipped with an intelligent building management system (BMS), allowing for automatic control of electricity, heating, ventilation, or LED lighting in the facilities. Furthermore, the developer has applied, among other things, solutions reducing water consumption and a license plate recognition system.