A joint venture (JV) between a fund managed by Credit Suisse Asset Management Global Real Estate, industrial developer and asset manager Chancerygate and the international real estate firm Hines has acquired a six-acre site in Dagenham, East London.
The JV intends to speculatively develop a new 165,000 sq ft industrial scheme on the site with a gross development value of £50m. Plans will be submitted to deliver up to 20 units ranging from 3,000 sq ft to 33,000 sq ft for warehousing and trade counter use. Units will be available freehold or leasehold.
The Rainham Road site, which was previously owned by wholesale electrical distributor Rexel UK Ltd, currently comprises warehouse buildings with ancillary trade counters and offices.
Situated between the A12 and A13, the scheme is located less than half a mile from Hackman Capital Partners and Dagenham Council’s proposed £300m film and TV studios.
Commenting on the acquisition, Chancerygate development manager, Tom Faulkner, said: “We are very pleased to have secured this exciting development opportunity in such a prominent London location. Our proposals for the scheme will address a shortage of high quality, new build warehousing supply in the area.”
The Dagenham scheme will be the second acquired by the JV between the three parties following the 350,000 sq ft Network West development in Bracknell, Berkshire, which is currently subject to planning approval.
Greg Cooper, Hines UK director of industrial and logistics, continued: “In developing a range of units speculatively, we aim to attract a variety of different businesses to Dagenham that are either expanding or relocating.
“Given the site’s proximity to what will be a world-class film studio, we also expect our development to be an attractive option for businesses serving the TV and film industry. This serves as yet another example of our creative transformation of urban environments with leading edge logistics developments.”
CBRE advised the JV on the site’s acquisition whilst Colliers International acted on behalf of Rexel.
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.”