Capital & Provident has gazumped ProLogis to develop Plaistow Wharf, a 7.5ha (18.5 acre) site in London Docklands.
ProLogis wanted to build an in-town distribution park to supply the City. However, the plan has been knocked on the head by rival Capital & Provident, which put forward an unconditional offer to owner Tate & Lyle, to purchase the North Woolwich Road site for £8.5m.
Simon Higgins, partner at DE&J Levy which advised Tate & Lyle, said: “The regeneration side of the local authority preferred a mixed-use scheme and felt ProLogis was not building what they wanted.
“Tate & Lyle decided it was better to do an unconditional deal. ProLogis is not happy about the situation, but Tate & Lyle had no choice under the circumstances.”
Richard Saint, vice-president of ProLogis, said: “We could have argued with Newham council about this but we didn’t want to have a battle. We’re now looking at other opportunities in the area.”
Completion of the purchase of Plaistow Wharf is imminent and Capital & Provident is awaiting outline consent for a mixed-use scheme.
Its plans include 24,154m2 (260,000 sq ft) of offices, residential apartments, a 4,640m2 (50,000 sq ft) budget hotel, a 3,716m2 (40,000 sq ft) healthclub, and retail, including a car showroom.
Subject to planning, work could begin on site in spring 2000; the development will create 559 jobs when finished.
The site will benefit from its own Docklands Light Railway station and is located on the western end of the Royal Docks. Capital & Provident was unavailable for comment.
Chesterton and Knight Frank are advising Capital &Provident.
EGi News 12/11/99
