The Co-Operative Group and Canada Life at Prologis M8 banner

The Co-Operative Group and Canada Life at Prologis M8

The Requirement

  • The Co-operative Group (Co-op) was seeking to consolidate six existing operations into one distribution facility at a location from which it could deliver to retail outlets in Scotland and the north of England
  • Because the Co-op has undertaken to reduce its energy consumption by 25% on 2006 levels by 2012, it was important that the new distribution centre should be a low carbon building
  • Canada Life was seeking a long-term secure investment at a good yield for its annuity fund

The Solution

  • Prologis was able to offer a site at Newhouse, near Glasgow, immediately adjacent to the M8 motorway and signed a pre-let with the Co-op for a 503,000 sq ft distribution centre
  • When agreeing the occupational deal, Prologis also entered into a forward commitment to sell the completed facility to Canada Life Ltd
  • The building has been designed and constructed to be energy-efficient and cost-effective to run. As a result, it has achieved an EPC 'A' 8 rating (equivalent to a CO2 index 20 under the English system), the lowest – and therefore the best – rating that Prologis has achieved to date. This means that the energy costs of the new Co-op building will be 56% lower than those of a benchmark new build of the same size rated EPC 'B' 18 (equivalent to a CO2 index 48 under the English system) and 80% less than the energy costs of an existing building (EPC 'E' CO2 index 102 under the English System).
  • The building has been designed and constructed to be energy-efficient and cost-effective to run. As a result, it has achieved an EPC ‘A’ 8 rating (equivalent to a CO2 index 20 under the English system), the lowest – and therefore the best – rating that Prologis has achieved to date. This means that the energy costs of the new Co-op building will be 56% lower than those of a benchmark new build of the same size rated EPC 'B' 18 (equivalent to a CO2 index 48 under the English system) and 80% less than the energy costs of an existing building (EPC 'E' CO2 index 102 under the English System).
  • As well as its energy performance, the overall environmental sustainability of the building has been assessed. Areas such as management, health and wellbeing, transport, water use, materials and waste, land use and ecology and also pollution have been included in the initial assessment and as a result, the building is expected to achieve a BREEAM 'Excellent' accreditation
  • The building has been used as the first trial site for the development of a new product by Corus Colours Ltd. New highly reflective roof liner panels have been used throughout the ambient area of the warehouse and it is expected that this system will reduce lighting energy use by 7-8%
  • Prologis has also taken measures to eliminate the carbon embodied in the structure and fabric of the building. Embodied carbon emissions were measured by sustainability consultants Deloitte. Physical reductions in embodied carbon were recorded during construction and the remaining embodied carbon footprint has been offset by 100%
  • As a result of the combined reduction of operational and embodied carbon emissions, the building has a carbon intensity of 0.228 tCO2e/m²/annum, which is 75% lower than that of a new benchmark building constructed in full accordance with current Building Regulations

The Result

  • The Co-op has a new cost-efficient distribution centre that not only saves running costs but that also contributes to its corporate climate change targets
  • Canada Life has a building that is likely to retain its value

    • "Prologis has an impeccable reputation for its high quality, energy efficient design and development. We therefore committed to this project early on and we are delighted to add the facility to our growing portfolio"

    Michael White, investment director at Canada Life

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