© Copyright NREP 2020 All rights reserved.
NREP Logicenters, a leading Nordic real estate investor and developer, and QHeat, a next-generation energy company, have completed their joint pilot project to build a deep geothermal well in Espoo, Finland. The pilot aims to provide a near zero-emission energy solution that can produce up to 40 times more heat energy than traditional ground heat.
NREP Logicenters and QHeat’s pilot project on a deep geothermal well has been completed at NREP Logicenters’ logistics property in Koskelonkuja, Espoo. The pilot is Finland’s first functional geothermal heating plant that can heat as well as cool large property complexes in a nearly emission-free manner.
The deep geothermal well, located on NREP Logicenters’ property, is approximately one kilometer deeper than a regular geothermal heat pump, which enables greater production of energy. The well, which was taken into use in January, is 1,300 meters deep and is estimated to produce more than 1,000 MWh of heat energy per year, which equals the heat consumption of approximately three apartment buildings. The well covers 60–80 percent of the 16,000 m2 logistic property’s heating. In addition, QHeat’s technology enables the property’s cooling during the summer.
“The heating of buildings represents approximately one fourth of the total energy consumption in Finland, and most of this energy is produced with fossil fuels. The only way we can reach our goal of using only renewable energy in our properties is to pilot and scale new solutions such as this one,” says Jani Nokkanen, CIO and partner at NREP.
The drilling of the deep geothermal well began at the end of July 2019, and the well’s heat production began in January 2020. The pilot is part of the Smart Otaniemi innovation ecosystem and received nearly half of its funding from Business Finland.
“We are excited to put into operation Finland’s first functional geothermal heating plant. We are grateful to Business Finland and NREP for funding this pilot. We believe that this technology has significant export potential as a solution to decrease emissions from heating and cooling,” says Miska Eriksson, QHeat’s CEO.
The energy production of NREP Logicenters’ deep geothermal well will be tested during spring and the company aims to utilize the technology also in its other properties.
“QHeat’s technology has great potential, as it enables emission-free geothermal heat also in densely built urban areas. We have already identified large projects in the Helsinki Metropolitan Area in which we would like to scale the technology,” Nokkanen continues.
Logicenters is now to expand its presence in Jönköping by developing a new logistics facility in Torsvik. The property is estimated to be 32,400 m2 in size. The development is scheduled to begin in the first quarter of 2020 and is expected to be completed in early 2021.
Having developed a number of logistics properties in Jönköping, Logicenters is continuing to strengthen its presence in the region. This 32,400 m2 logistics facility will be located on Möbelvägen in Torsvik. The property is to be built on speculation and must therefore be developed to suit both a single tenant as well as several different ones. The development is scheduled to begin in March and is expected to be completed in early 2021. As with Logicenters’ other new developments, the property will have a clear environmental profile and will be prepared for the installation of solar cells on the roof.
“This development will further strengthen our business offering and will enable us to meet customers who value rapid access to logistics properties, something that we notice is in increasing demand. We see tremendous potential in the area and are therefore very pleased to strengthen our presence in Torsvik. The region is one of the country’s most important logistics hubs,” says Matthias Kettelhoit, Head of Logicenters.
Logicenters has been active in the Jönköping region for many years. The company’s tenants in the area include Babyshop, Bring and Kitron. The new development will take place on an attractive site in the area, near IKEA and Elgiganten, and directly adjacent to the property where Kitron is the tenant.
Logicenters and Qvana Invest are jointly developing another logistics facility at the Stigamo Logistics Park, Jönköping. The tenant will be a company within AD Sverige which is already leasing Logicenters’ neighbouring property and is now seeking to expand to another facility. Moving in to the 25,000 m² facility is scheduled for the end of 2020.
Logicenters is continuing to consolidate its presence at important logistics hubs. The company is now cooperating with Qvana Invest to once again develop a logistics property at the Stigamo Logistics Park, south of Jönköping. The new development will be a detached building measuring approximately 25,000 m². It will be constructed in connection with an already existing facility currently leased by AD Sweden at the Stigamo Logistics Park. A subsidiary of AD Sverige will become the tenant at the new property, thereby expanding its presence in the area, as Logicenters is doing.
“We are delighted with our continued successful collaboration with Qvana Invest and AD Sverige. Stigamo Logistics Park has an ideal strategic location for logistics and the selected site is among the best in the area with clear visibility from the passing E4 motorway. The building has been designed in accordance with our standard model for modern logistics facilities and we are also planning to be able to install solar panels on the roof in line with our focus on sustainability,” says Matthias Kettelhoit, Head of Logicenters.
The new facility is strategically located on Norra Stigamovägen and is being built as per Logicenters’ standard specification adapted for modern logistics operations. The property is being prepared in line with Logicenters’ strong focus on sustainability, including the installation of solar cells on the roof.
“We are delighted that Qvana Invest and Logicenters are developing a new property in Stigamo because our previous good cooperation left us wanting more. Like us, Logicenters prioritises modern logistics properties with sustainable options such as solar cell plants. We hope that AD Sverige will thrive at its new property,” says Jonas Andersson of Qvana Invest.
“It is both pleasing and important that we will have access to additional storage space in Jönköping. Furthermore, the fact that this facility is being constructed in direct connection with our current central warehouse, and in an area where we are thriving, is something we are very positive about. Our previous experience of working with Logicenters and Qvana Invest has been outstanding and we look forward to expanding and moving into our new modern warehouse,” says Adam Källberg of AD Sverige AB.
Logicenters and Kilenkrysset are once again working on a collaboration. Together, the parties will develop a 120,000 m2 site in Staffanstorp outside Malmö. Logicenters has the opportunity to build on 60,000 m2 of the site and the initial plans are construct a modern 24,000 m2 logistics facility next year. There are not yet any confirmed tenants.
Following several joint real estate projects, including one in Bålsta earlier this year, Logicenters and Kilenkrysset have once again decided to work together. This time it is on the development of a 120,000 m2 site in Staffanstorp outside Malmö. Logicenters will take possession of the site in early 2020 and construction can take place on up to 60,000 m2 of the total site. In the initial phase of the project, Logicenters intends to develop a logistics facility with approximately 24,000 m2 of leasable space based on speculation. Construction is to start before summer 2020 and will be scheduled for completion in early 2021.
“One of Logicenters’ primary strengths is that we are able to offer modern logistics facilities at strategically the most important locations in the regions where we have a presence. This project in Staffanstorp, with its attractive location outside Malmö and close proximity to the Continent, is further proof of this. The land purchase in Staffanstorp is an important piece of the puzzle for us and it will be fun to work on the land development with Kilenkrysset with whom we have previously successfully worked on many occasions,” says Matthias Kettelhoit, Head of Logicenters.
The site acquired is located at Västanvägen in Kronoslätt’s Logistics Park. With its proximity to Malmö and the Öresund region, the area’s geographical location is very attractive to many different types of companies. In the past, companies such as Bring Frigo, Kuehne + Nagel and Microsoft have chosen to establish themselves in the business park.
“Logicenters shares our vision of contributing to increased growth in the region, with access to smart logistics playing an important role. In August, Microsoft chose to buy from us in the same area and earlier this year we extended the lease with Alfa Laval for its head office. We are experiencing significant demand from companies wanting to establish themselves in the region so it is both gratifying and valuable to once again be entering into a partnership with Logicenters,” says Jan Persson, CEO at Kilenkrysset, who further believes that the good cooperation with Staffanstorp municipality is facilitating this positive development and space still available for smaller logistics establishments.
The groundbreaking ceremony for the new logistics facility in Bålsta has now taken place. The property being built and owned in the long term by Logicenters will become environmentally certified. With an area of 104,000 m2, it will be one of Europe’s largest and most modern logistics facilities. Logicenters and Axfood’s purchasing and logistics company Dagab previously signed a contract for the development and leasing of a property scheduled to come into operation in 2023.
In July 2019, Logicenters and Dagab, Axfood’s purchasing and logistics company, signed an agreement to make Dagab a long-term tenant at the logistics property in Bålsta. Yesterday, on the 25th of November, construction began on the facility which will be one of Europe’s largest. The property will be environmentally certified in accordance with BREEAM-SE, including modern specifications such as temperature zones and a high degree of automation.
“I am delighted that the day has arrived for construction to commence on what will become one of Europe’s largest and most modern logistics facilities. This means that we are now expanding our property portfolio with the addition of a large, environmentally certified property in an excellent location. Receiving this confidence from a major tenant is something Logicenters values strongly and we are convinced that it will flourish here. We also want to take the opportunity to thank Axfood and Dagab for a very rewarding collaboration,” says Matthias Kettelhoit, Head of Logicenters.
The property is being built at Håbo Lundby 2:8, just outside Bålsta, northwest of Stockholm. The site is strategically important for logistics, with its proximity to both the E18 motorway and Stockholm. The facility is scheduled to become operational in 2023.
In addition to representatives from Logicenters, Dagab and Axfood, also present at the ceremony were the mayor of Håbo municipality, Liselotte Grahn Elg, Agneta Hägglund, opposition councillor, and Tobias Arvidsson, head of local government at Håbo municipality.
“We are very happy that ground has now been broken for our highly automated logistics facility. The new logistics centre will enable us to meet tomorrow’s challenges and consumer needs, creating a flexible, efficient and sustainable logistics chain for both retail and e-commerce customers. We are looking forward to moving in,” says Nicholas Pettersson, CEO Dagab Purchasing & Logistics.
Logicenters is continuing to strengthen its portfolio in the Finnish market. In Kerava, just outside Helsinki, Logicenters is currently developing a logistics facility with a total area of 18,300 m2. A ten-year lease has been signed with tenant Dachser to lease an area of around 4600 m2. The property is scheduled for completion in 2020.
A leading developer, owner and manager of logistics facilities in the Nordic region, Logicenters is currently developing a property in Kerava, Finland. The 18,300 m2 property is located in the Kerca logistics zone, just outside Helsinki, and is scheduled for completion in the 3rd quarter of 2020. Construction company Lehto Tilat Oy is responsible for construction of the property. A ten-year lease has been signed with logistics company Dachser regarding a 4600 m2 area comprising a 4000 m2 cross-docking area and 600 m2 of offices.
Logicenters’ new facility is located in a strategically important area in the Helsinki region, in close proximity to the international airport and the E75 motorway. Its proximity to the Savio railway station also provides excellent options for commuting to Helsinki. In line with Logicenters’ ambition to improve energy efficiency at its properties, this logistics facility will be equipped with solar cells on the roof and will utilise geothermal heat.
“We are delighted that the development in Kerava has begun. The area is attractive due to its strategic location, excellent communications and competitive leasing levels. Consequently, it is gratifying that the municipality is investing in logistics. We have previously enjoyed a very good relationship with Dachser, which makes it very pleasing to be entering into this development with the company,” says Jarkko Äikää, Commercial Director at Logicenters in Finland.
“The modern terminal in Kerava, as well as proximity of the Vuosaari harbor and the main railway, provides an excellent logistical site for Dachser now and in the future. Furthermore, we are able to provide a multitude of services for Finnish export and import companies in the domestic market. The flexible collaboration with Logicenters and the City of Kerava enables us to continue our growth story, which began for our road transport business in 2014 in Finland,” says Tuomas Leimio, Managing Director, European Logistics Finland, DACHSER Finland Oy.
”In Kerava’s strategy, the City is strongly committed to helping businesses grow and thrive in the area. Logistics is one of the key industries in our modern economic environment. The new logistics facility will expand the Kerca logistics zone and will increase the attractiveness of Kerava for businesses as a whole. The facility will also create dozens of new jobs, which is absolutely fantastic,” says Kirsi Rontu, the Mayor of Kerava.
The new logistics facility has around 13,000 m2 still available for leasing by future tenants wishing to establish themselves in one of the best logistics zones in the Helsinki Metropolitan area. The facility has already raised interest among several industry organizations.
Working in collaboration with ÅF-Infrastructure, Logicenters conducted an energy audit of 13 of Logicenters’ properties. The energy audit shows that the logistics facilities can save up to 30 percent of their total energy consumption. Moreover,
most of the actions appear to involve relatively small investments.
Last winter, Logicenters commissioned ÅF-Infrastructure to initiate a project to help Logicenters’ tenants improve energy efficiency and to reduce their environmental impact. In total, 13 of Logicenters’ logistics facilities have undergone an energy review with the results showing great potential for saving. By streamlining energy consumption in the properties, it is possible to reduce energy costs by one third. In total, this means savings of SEK 500,000 annually – for each property.
“Our energy review shows that a great deal of energy is being wasted. The result indicates that there is greater potential for savings than we believed, especially considering that the properties which were inspected are modern facilities. The cooperation with ÅF is an important step for Logicenters in our efforts to improve the energy efficiency of our properties and to reduce our carbon footprint,” says Matthias Kettelhoit, Head of Logicenters.
Energy-efficient actions in the 13 facilities can reduce CO2 emissions by a total of more than 1 000 tonnes per year. For the properties which underwent the energy review, the proposed measures to save 30 percent would mean a repayment term of 7.5 years. When introducing minor measures, which essentially do not involve any monetary investments, the savings potential is still 6 percent.
“Energy efficiency may seem expensive, but we want to use this project to demonstrate that it does not have to cost a fortune to lower costs. It may mean training the staff in the efficient handling of machines or introducing timed lighting on the premises. Certain investments have a longer repayment period than others, but in the long run, both the bank account and the environment benefit from introducing smart, energy-efficient measures,” says Björn Rinde, energy consultant at ÅF-Infrastructure.
The work is now continuing to carry out energy audits at more facilities in Logicenters’ property portfolio. In total, it is estimated that the properties could reduce their CO2 emissions by as much as 6 400 tonnes a year through the introduction of more energy-efficient measures.
List of tips for how to improve energy efficiency at logistics properties:
Logicenters and Axfood’s purchasing and logistics company Dagab have now signed a contract for the development and leasing of a logistics facility of just over 100,000 m2 in Bålsta. Dagab will become a long-term tenant at the facility, which will be one of the largest in Europe. The property will be 30 metres tall, have environmental certification and comply with modern specifications such as a high degree of automation and several temperature zones.
In March 2019, Logicenters signed a memorandum of understanding with Dagab, Axfood’s purchasing and logistics company, for the development and leasing of a logistics facility in Bålsta. The parties have now signed an agreement which goes beyond development to represent Logicenters’ largest lease in Sweden.
“This is a major development project where Logicenters is expanding its property portfolio with a large, modern and environmentally certified facility beyond the ordinary. We are very proud of the confidence Axfood is placing in us and the development of a facility in a prime position which will enable it to expand its operations. We have a successful collaboration with Dagab and look forward to a rewarding and long-term relationship,” says Matthias Kettelhoit, Commercial Head at Logicenters.
The logistics facility, with a capacity of around 100,000 m2, is one of Europe’s largest and most modern food distribution centres for both retail and e-commerce. The property will have a unique height of 30 metres and a high degree of automation which will ensure that the chilled, refrigerated and temperate zones are maintained. In line with Logicenters’ strategy regarding sustainability and energy efficiency, the facility will have a high level of environmental certification and there is also a plan to incorporate solar cells on the roof.
The property is strategically located at Håbo Lundby 2:8 outside Bålsta, northwest of Stockholm. The proximity to the E18 and Stockholm makes this an attractive location. In addition, railway sidings run all the way into the site, which will facilitate the future transport infrastructure. The logistics facility will enter into operation in 2023 and will also mean many job opportunities.
“We are very pleased that we are now one step closer to the start of construction on our highly automated logistics centre. This new logistics solution will enable us to become both more efficient and more flexible when it comes to future developments in the grocery trade. Being able to stock a wider range of products in the new facility will enable us to deliver faster and more sustainably, strengthening our offers to customers,” says Nicholas Pettersson, CEO of Dagab.
Real Advokatbyrå has provided Logicenters with legal consultation regarding the deal.
Nordic real estate investment company NREP and Logicenters will build the world’s first deep geothermal well with seasonal storage capability in Espoo in cooperation with the energy industry start-up QHeat. The project pilots a new, nearly emission-free energy solution for large real estate, producing as much as 40 times the heat energy of traditional geothermal heating.
The deep geothermal well developed by QHeat is a medium-depth geothermal well drilled to the depth of approximately two kilometres and can heat and cool large real estate areas or regional grids with near-zero emissions. The solution enables emission-free geothermal heating in growing urban areas, as well, as it is well suited to dense housing areas and groundwater areas. The pilot is carried out at the NREP Logicenters’ logistics property in Espoo, and it is estimated to reduce the property’s CO2 emissions by as much as 90 per cent. The project is set to be completed by the end of November.
“By piloting new solutions, such as QHeat’s deep geothermal heat, and by scaling them into wider operating models, we are actively introducing new ways to reduce the environmental impacts of real estate in the industry. We are also continuously exploring possibilities to improve energy efficiency and increase the use of renewable energy in our properties. We are committed to reducing the climate emissions of real estate and to promoting energy efficiency, because real estate and construction produce approximately a third of Finland’s carbon footprint,” says Jani Nokkanen, partner at NREP.
Finland’s goal is to reduce emissions by at least 39 per cent from the 2005 level by the year 2030. With deep geothermal heat, emissions from real estate heating can be reduced by as much as 95 per cent compared to fossil fuels. If solutions such as deep geothermal heat can be scaled to even 5 per cent of Finland’s real estate stock, it would mean a reduction of half a million metric tonnes of CO2 emissions per year, or four per cent of Finland’s emission target, according to QHeat’s calculations.
“A clean future lies beneath our feet. With deep geothermal heat, we can make good use of the warm summer months, because during the summer, we can store waste energy from cooling into the ground and then use it for heating in the winter. Deep geothermal energy has significant export potential as a solution that can mitigate climate change by reducing the emissions from heating and cooling on a global scale,” says Miska Eriksson, CEO of QHeat.
Qheat’s deep geothermal heat technology is patented and has been tested in cooperation with Finnish experts and universities. The project has received funding from Business Finland as part of the Smart Otaniemi initiative.
This Monday marked the start of construction on the property that Logicenters is developing in Landskrona, Skåne. The modern logistics facility with solar cells on the roof is scheduled to be available to tenant Thomas Cook Travel Retail during 2020.
In February 2019, Logicenters announced that it is undertaking a development in Skåne for the first time. Ground has now been broken on the 24,000 m2 logistics facility at Kronan Logistics Park in Landskrona. In addition to the property’s modern specifications, solar cells will be installed on the roof, in line with Logicenters’ strategy on sustainability and energy efficiency.
Present at the groundbreaking ceremony was Eva Sterner, Head of Development at Logicenters and Torkild Strandberg, the mayor of Landskrona. Representing Thomas Cook Travel Retail were Magnus Persson, Warehouse Logistics Manager, Mikaela Andersson, Project Manager Warehouse and Lars Bording, Director of Airshoppen.
“I am pleased that Logicenters is establishing itself on the Skåne market with this modern new development. Landskrona is ideally positioned in an important logistics hub in the region. In addition, half of the property is still available for anyone looking for an outstanding logistics site in the Öresund region,” says Matthias Kettelhoit, Commercial Head at Logicenters.
The logistics facility is scheduled for completion during the second quarter of 2020. Tenant Thomas Cook Travel Retail will utilise 12,000 m2 of the property’s total of 24,000 m2, divided into 10,000 m2 of warehouse space, a 1,500 m2 mezzanine and 500 m2 of office space.
“When the property is ready, we will be able to increase capacity for our online shopping service Airshoppen, which is important to us. It is exciting to see construction beginning and we are pleased that Logicenters has been able to meet our logistical requirements, especially regarding sustainability,” says Magnus Persson, Warehouse Logistics Manager at Thomas Cook Travel Retail.
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