GLi, a joint venture between specialist industrial developer KSP and global real assets investor PATRIZIA, which is delivering modern urban logistics that support a cleaner, greener and more efficient capital city in the UK, has commenced construction of CR2 in Croydon. The best-in-class ultra-sustainable logistics warehouse will set new benchmarks for cost-efficiency in the south London logistics sector, delivering estimated annual savings of £155,000 to occupiers through its innovative sustainable features. This follows the recent practical completion of CR1, GLi’s first 53,043 sq ft ultra-sustainable Croydon unit located on the adjacent site, which is now available to lease.
Trudy Revell, Development Director at GLi, said: “Breaking ground on CR2 marks a significant step in our ongoing commitment in Croydon and an exciting step in our development strategy, which focuses the evolving needs of the Industrial and logistics market for our customers. This ultra-sustainable warehouse will deliver significant operational cost advantages to our customers while meeting the growing demand for efficient last-mile logistics space in South London. We’re confident that CR2’s cutting-edge design and strategic location will set new benchmarks for the sector.
CR2’s strategic position in Croydon’s established industrial heartland offers unparalleled accessibility for last-mile deliveries to both Central and South London markets. The location benefits from Croydon’s dense, skilled local labour pool specifically suited to logistics operations, providing occupiers with immediate workforce advantages in a competitive market.
The development will integrate state-of-the-art solar photovoltaic (PV) technology with maximum rooftop array coverage, significantly reducing operating costs. Additional cost-efficiency comes through CR2’s industry-leading 100% EV charging infrastructure, enabling occupiers to transition to all-electric fleets and realise substantial fuel and maintenance savings of approximately £2.81 per square foot annually.
David Johnson, Chief Executive Officer at KSP, said: “This is a significant milestone for our next industrial unit – CR2 – which is designed to meet the demands of modern society, both in terms of last mile logistics and sustainability credentials. Not only is it in a key strategic location close to Central London – offering rapid distribution routes throughout London – but its location in Croydon also provides exceptional access to a skilled logistics workforce. The unit itself will provide future occupiers with an ultra-sustainable building that delivers substantial operational cost advantages alongside its impressive environmental credentials.”
Mark Krol, Director, Fund Management at PATRIZIA, said: “CR2 represents an outstanding addition to our investment portfolio, offering premium rental potential alongside strong appreciation prospects. The development’s exceptional sustainability specifications and significant occupier cost-saving features create a compelling value proposition that strengthens our London industrial portfolio. We anticipate CR2 will deliver superior long-term returns while meeting the growing market demand for cost-efficient, future-proof logistics space.”
Alongside energy savings and sustainability credentials, CR2 also offers remarkable adaptability and space advantage. Its 12m clear height offers 50% more volume than many warehouses in Croydon and there is potential for a 37,000 sq ft mezzanine, presenting a 67% increase in operating space.
The new scheme continues GLi’s expansion and further bolsters its Greater London portfolio. Aiming to meet an increasing market demand for last mile logistics space within the M25, other GLi locations include Park Royal, Charlton, Enfield and Mitcham, with the platform’s first unit in Croydon – CR1 – having achieve completion.
CR2 is scheduled for completion in Q4 2025.