In 2007, WDP invested 100 million Euro in another major player in the Fruit and Vegetable sector, namely Univeg. The share in the Fruit and Vegetable sector is currently approximately 10%, and WDP is expecting to further expand its services here, according to the company's CEO, Joost Uwents.
Univeg and The Greenery
WDP is a publicly traded company, active in various sectors and market leader in the Benelux in the rental of storage spaces. "We actually serve all branches that deal with logistics and storage. The first major step in food logistics was in 2007 when we signed a deal with Univeg. At the time, it had to do with all the premises of the group, both in Belgium and the Netherlands. Half of the investments pertained to new construction projects." He notes that at the time, the deal was remarkable, though perfectly encompassing in Univeg's outlined growth strategy. During the construction of the Univeg buildings, WDP came in contact with The Greenery. "We have kept in touch since then, and as of the end of last year, once again there were serious talks and negotiations." Next to these two companies, WDP has more ongoing contacts in the Fruit and Vegetable sector.
Specific logistics
Joost emphasizes that their buildings are constructed and decorated according to customer wishes. "Everything is made with the customer in mind. One of the most significant ways in which we differentiate ourselves is that not only do we construct and rent logistic buildings, but that we are also familiar with the sector. Food logistics is very specific. For example, there can be refrigerated warehouses or ripening chambers with different temperature zones. With that, risks should be assessed. We know what we are talking about and what the possibilities and dangers are.
The CEO expects growth in the Fruit and Vegetable sector. "This sector must steadily comply with various health regulations and building requirements keep becoming stricter." According to Joost, there are financial reasons why companies opt for a real estate specialist. "Sometimes the investment is simply too big; in comparison to an ordinary warehouse, refrigerated warehouses can sometimes cost twice as much. Therefore, knowledgeable external partners are sought after."
Long term
The contract period varies per customer. "Mega-investments with full refrigeration equipment can last 15 to 20 years. In the meantime, we demonstrate our flexibility. During the rental period we continue to think with the customer regarding to possible renovations or expansions. We want to support our customers in their growth. WDP is not a supplier of buildings for which companies only pay us rent; we are real estate partners that think with the customer. Also in the field of new technologies. We look for solutions to cut costs, also in a sustainable way."
Competition
Competition in the world of real estate is not small. "Many parties are active. On the one hand, there are the construction companies that want to build. On the other hand, you have the investors that show a lot of interest for logistics in general. We have the advantage of being very familiar with the market and knowing the sector. Not everyone can say that."
Developments in the Fruit and Vegetable sector
"The Fruit and Vegetable sector is constantly in motion", believes Joost. "We definitely see trends in the field of real estate. The buildings are becoming better, more automated and highly equipped. In addition, sustainability is becoming increasingly important. It is a fascinating sector which we know will continue to exist because everyone keeps eating fruit and vegetables. However, the sector requires continuous monitoring, continuously seen in evolution, mainly on the production side." The vacancy rate in certain agrifood clusters is also noted by the CEO. He considers Barendrecht an important 'hub' in the Fruit and Vegetable sector. "That is why we also want to invest there. If we would lose a renter, the buildings are reusable for others. We stand behind the renewal of buildings that are highly equipped. We want to be a partner for good companies. There are many buildings in the Fruit and Vegetable sector, and there is a need for renewal. We are happy to play a role in that."
