Barking and Dagenham London Borough Council’s regeneration agency, Be First, has acquired a warehouse on the waterfront from BlackRock for £11.9m.
It has purchased the 82,246 sq ft warehouse on the River Roding from BlackRock (UK) Property Fund.
The council approved the purchase of the 4.37-acre site at 44-52 River Road as an investment asset at a cabinet meeting in June.
Be First will retain the existing tenant, office service provider Restore, until the end of 2029. It currently pays a rent of £600,000 pa, equating to £7.30 per sq ft, and it is anticipated this will rise to circa £10 per sq ft at a rent review in 2022.
The site sits within an established industrial area, providing opportunity for the relocation of other businesses from sites that have been identified for residential development. After the expiry of the lease the agency will seek to deliver a mixed-use development on the site.
Jonathan Langham, head of commercial development at Be First, said: “The River Roding was once one of London’s forgotten waterways but is now brimming with opportunities for ambitious high-quality residential and commercial development schemes that will drive the future of London’s eastward expansion.”
Barking and Dagenham Council leader Darren Rodwell said: “This investment will not only benefit the people and economy of Barking and Dagenham, it’s an investment in east London and the wider capital – it once again shows that, when it comes to London, the east is where it’s at.”
Be First was advised by Lambert Smith Hampton. BlackRock was advised by DTRE.
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