Sainsbury’s has selected Prologis to develop a 530,000 sq ft (49,238 sq m) industrial warehouse in the Midlands

The facility will be built at the 112-acre ProLogis Park Pineham adjacent to 15A of the M1 motorway. It will serve as a regional distribution centre serving 50 Sainsbury’s stores throughout the central England, under a multi-year lease agreement. Completion of the building is scheduled for the second half of 2007.

Alan Curtis, managing director for ProLogis UK, said: ‘The agreement we’re announcing today significantly expands our relationship with Sainsbury’s. It also underscores the strength of ProLogis Park Pineham as a distribution site and the value the property brings to our overall UK portfolio.’

Sainsbury’s currently occupies 112,000 sq ft (10,405 sq m) from ProLogis outside London, and a 256,000 sq ft (23,225 sq m) facility from ProLogis in the east Midlands.

The new facility will be developed using a variety of advanced environmental features designed to significantly reduce energy consumption and carbon emissions.

‘Sustainability is a core value at our company,’ said Roger Burley, Sainsbury’s head of supply chain. ‘We recognize that virtually every business decision we make has an impact on the environment, and that we can minimize that impact by improving our stores and business facilities.’