London residential developer Berkeley has bought its largest scheme in the capital since the referendum with the acquisition of a 21-acre site from SEGRO through its St George arm.
Northfields Industrial Estate in west London was bought without planning permission, but could easily accommodate more than 2,000 homes. Assuming an average price of £400,000, this would mean a GDV in excess of £800m.
St George has schemes nearby in Beaufort Park, Colindale, and at the Filmworks in Ealing.
It will now work with Brent Council on its plans for the site, which is part of the Alperton Housing Zone, and which could be developed at a higher density than the surrounding area.
Michael Bryn-Jones, managing director at St George, said “The character of our proposals will be very different to what is represented in the local community at the moment… We are working hard with Brent to get them to look at various options and how modern developments evolve and are managed.”
The proposals, he said, could potentially include rental as well as affordable elements, though it is still very early in its development.
“The site is substantial enough to be able to hold these different tenures. London is ever changing and people’s housing needs change, so it’s our job to respond to that,” he said.
SEGRO has owned the site since 2009, when it bought it as part of its takeover of Brixton. Since then, according to SEGRO business unit director Alan Holland, its usefulness as a modern industrial asset has waned.
He said: “As with all our assets, we are looking to find the best long-term use for this particular asset. The site just had a number of technical constraints for industrial and urban logistics-type development.”
SEGRO consulted Brent Council and the GLA regarding future uses for the site, as demand for residential land spread from inner London. While the site was always earmarked for employment space, it was included in the Alperton Housing Zone in June 2015.
Berkeley has bought the site with vacant possession and hopes to submit plans by the end of the year, with the percentage of affordable housing, as well as density, up for discussion.
Judith Salomon, St George’s director of planning, said: “It becomes a conversation with the council about their objectives and priorities and how we deliver a joint vision.
“There will be discussions around affordable. And of course the percentage is not as simple as just a percentage. Its also about how that affordable housing is made up, and so it becomes a factor of what the other uses are on the site.”
CBRE advised SEGRO on the sale; Berkeley was unrepresented.
SEGRO and residential
As demand for housing development has spread out from central London, the logistics REIT has included residential development on other peripheral London sites. At the Nestle Factory in Hayes, it will include 250,000 sq ft of logistics space alongside 1,400 homes developed by Barratt.
However, Holland stressed that the REITs number one objective was developing logistics space for London, and there is no planned change in that.
“As it happened, we are very aware of the need for London to respond to population growth, demographics… what we think that means is there will be occasions where we can look at developing jobs and homes side by side,” he said.
To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette
