Amazon's £40B UK Investment Will Centre On Property

Amazon is set to invest £40B in the UK in the next three years, the company said in a joint announcement with the UK government — and real estate is at the centre of its strategy.

The tech giant will build four large fulfilment centres, it said in a statement, one near Hull, one near Northampton and two in the East Midlands. About 4,000 people will be employed across the four sites, Amazon said.

Amazon will also invest in new last-mile delivery hubs and spend money upgrading its existing delivery network.

In addition to new logistics facilities, Amazon will spend £8B building an unspecified number of data centres, an investment that was announced last year, and establish two new London offices. One of those is likely to be the 180K SF the firm is leasing at The Stage, the mixed-use development being constructed by a consortium led by Cain International, in Shoreditch, on the eastern fringe of the City.

The company's plans also call for redeveloping the historic film studio at Bray in Berkshire, to the west of London. Amazon already leases space at the Pinewood studio about 30 miles away.

Real estate investors will be keeping an especially close eye on the company's industrial facilities. Amazon tends to build industrial properties, sell them, then lease them back.

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