Vertical agricultural business leases space in Greve Distribution Center
The German company Infarm, which specialises in growing products such as herbs inside, has leased space at Greve Distribution Center. MG Real Estate is the developer behind this. And they are pleased with the agreement, which is an indicator of the current great market demand.
Greve Distribution Center, a state-of-the-art logistics centre under development, is located south of Copenhagen. And most recently, it has welcomed the German vertical agricultural business Infarm as a tenant. Infarm specialises in growing green herbs vertically inside, and it supplies customers such as the Danish supermarket chain Irma and has activities across ten countries in Europe, North America and Asia.
The developer MG Park GDC is extremely pleased with the lease and with the fact that the 40,000 m2 are fully occupied. That space will be 100,000 m2 once the construction has been completed.
“We’re naturally excited to welcome such an exhilarating and innovative business as Infarm. We now have a 100% occupancy rate in Greve. And when we can attract businesses such as Infarm, that tells us that our location is an attractive and desirable overall logistics and production solution,” says Christopher Thomsen, in charge of Danish business for MG Real Estate, a major Belgian developer with activities across Europe.
Modern and flexible solution a top priority
For Infarm, it was important to find a logistics solution that could serve as a foundation stone for the growth of its business in Denmark in terms of interior design, flexibility and location.
“It is imperative for our production that we have high indoor clearance because our modular agricultural units cultivate plants at multiple growing levels. Ideal locations like this can meet our needs. With the right building height — at least 11 metres — and located so close to Copenhagen, facilities such as these can produce millions of plants a year. And that makes it ideal for cultivating fresh food for people in cities close to where they live and eat,” says Cristoffer Harlos, Infarm’s Head of Expansion in Europe.
Booming warehouse and logistics markets
According to MG Real Estate’s Christopher Thomsen, the market for warehouse and logistics solution leasing is undergoing rapid growth. It has accelerated quickly in the wake of the Covid-19 pandemic, but actually started even before then.
“In many places in Denmark, there are a great number of old logistics buildings. But our new state-of-the-art buildings can outcompete those on every parameter. The demand for warehouse space has also risen exponentially during recent years’ consumption demand, and we are seeing that customers are generally willing to be bound to longer leases right now,” the country manager notes.
MG Real Estate is working intensively to expand its business in Denmark, and Christopher Thomsen expects that they will be able to unveil several new projects over the next few quarters.
In addition to its Greve logistics centre, MG Real Estate is currently working on a project in Fredericia.