A joint venture (JV) has acquired Titan Industrial Estate on Hogg Lane in Grays, Essex, for £50m to speculatively build 430,000 sq ft of Grade A urban logistics and industrial space.
Developer Chancerygate and real estate private equity firm Northwood Investors have purchased the 35-acre site which is located one mile north of the town centre and five miles east of junction 30 of the M25.
The JV intends to develop 430,000 sq ft across 28 leasehold units ranging from 5,000 sq ft to 130,000 sq ft on the land.
The site was sold to Chancerygate and Northwood Investors by chemical manufacturer and distributor Industrial Chemicals Group (ICGL). The site currently houses an IGCL manufacturing facility which is surplus to requirements and will be closed down over the next 12 months after which it will be demolished for the new development.
Commenting on the acquisition, Chancerygate head of development, Alastair King, said: “This site presents an excellent opportunity for us to speculatively build a state-of-the art, sustainable business park.
“It will provide much-needed smaller urban logistics and industrial units in a local and regional market dominated in recent years by big and mid box development.
“The development’s proximity to the M25 means future occupiers will be best placed to serve Essex, East London and the wider Greater London conurbation.
“Our proposed development of high specification, sustainable industrial accommodation will contribute to the economic growth of local economy and stimulate further investment and job creation supplying units ideally suited to local SME companies.”
Chancerygate and Northwood Investors will submit its plans for the development to Thurrock Council in the autumn.
John Carver, director at ICGL said: “After 40 years on site, we have collectively decided at ICGL to sell Titan Works to pave the way for our expansion at West Thurrock, which will become our new headquarters and one of two mega sites for IGCL in the UK.”
Bruno Jaczkowski, founder of Land 3.0*, who acted on behalf of ICGL along with Montagu Evans, said: “This fantastic future development demonstrates how urban regeneration is beyond simply housing. In this case, multiple enterprises and future career opportunities will be created.”
Tom Paton-Smith, partner at Montagu Evans, added “Montagu Evans have again demonstrated best value for their clients through leveraging upon their industrial and land expertise”.
Founded in 1995, Chancerygate is the UK’s largest multi-unit urban logistics property developer and asset manager and the only one operating nationwide.
The company has offices in London, Warrington, Birmingham, Bristol and Milton Keynes. It currently has more than 3.5m sq ft of industrial space under construction or ready for development across 32 sites ranging from Bournemouth to Edinburgh
Northwood Investors is a privately held firm that owns and operates real estate across the US and Europe. The firm currently manages approximately $9bn of investor capital with its Urban Logistics division headed by Executive Directors Richard Pellatt and Nick Turner.
Chancerygate and Northwood Investors were advised by DTRE.