An industrial site in Dagenham is to be redeveloped into a modern, purpose built logistics and supply centre after Colliers International secured a deal between Rexel UK Ltd and a joint venture of Credit Suisse, Chancerygate and Hines.
The six-acre site in Rainham Road South was open to offers from investors interested in single-use or mixed-use designations. Last week the sale completed between the joint venture and Colliers’ client Rexel UK Ltd. The joint venture intends to meet the lack of industrial space available in the capital by speculatively developing a new 165,000 sq ft industrial scheme to include up to 20 units ranging from 3,000 sq ft to 33,000 sq ft for warehousing and trade counter use.
Len Rosso, Head of Industrial & Logistics at Colliers International said: “This year has shown the need for good quality industrial space across the country as supply logistics have been tested like never before. We have a historic issue of low-supply of industrial stock, so the development of speculative, modern industrial space in this east London location will help to meet the growing needs of the industry.”
Positive discussions with the local authority indicated that a development with a mix of commercial or light industrial usage, alongside up to 450 homes could be acceptable to local planners. However the Greater London Authority, who has overview of the planning process in London, own planning policies meant that the only viable option for sale was for the site to remain single use.
James Burke, associate director in the residential team at Colliers International, handled the sale, added: “Undoubtedly this site needed a redevelopment commitment which we have been able to secure. We had been hopeful, given the initial guidance from the local authority, this site could have been maximised further as an opportunity for a mixed-use scheme which would have meet both housing and logistics needs in the borough, however regional planning restrictions meant this was not a viable option for this site.”
