A joint venture between Chancerygate, Hines and Credit Suisse has acquired a six-acre site in Dagenham, earmarked for residential, for a new £50m industrial park.
The former Rexel site was pitched as an unconditional residential-led development, with initial proposals showing capacity for 455 homes, alongside 233,516 sq ft of commercial space, and a pricetag of £18m.
The buyers secured the site for £14.5m, with industrial values beating out residential in the area. The council has also been keen to retain vital employment space in the borough, amid a surge of new housing.
The site on Rainham Road is located between the A12 and A13, half a mile from Dagenham East Underground station and the £300m Dagenham Film Studios, to be developed by Dagenham Council and Hackman Capital Partners.
The joint venture plans to develop a 165,000 sq ft industrial shed on the site, with 20 units ranging from 3,000 sq ft to 33,000 sq ft for warehousing and trade counter use. It will offer the units as freehold or leasehold.
The scheme will be the joint venture’s second development after the 350,000 sq ft Network West development in Bracknell, Berkshire, which is currently awaiting planning consent.
Chancerygate development manager Tom Faulkner said: “Our proposals for the scheme will address a shortage of high quality, new build warehousing supply in the area.”
Greg Cooper, Hines UK director of industrial and logistics, said: “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.”
Colliers’ head of industrial and logistics, Len Rosso, said industrial values in the area remain strong, lifted by continued demand. Rosso said: “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.”
Rexel was advised by Colliers. The joint venture was advised by CBRE.
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