SEGRO has completed its £120m acquisition of a plot of land in Radlett, Hertfordshire, for a new rail freight terminal and logistics depot.
The site measures 419 hectares and is on the former Radlett Aerodrome.
The three sections of land that make up the site have been acquired from Hertfordshire County Council, Tarmac and Gorhambury Estates Company. Half of the sum will be deferred for 12 months. SEGRO is funding the deal from cash and bank facilities.
Under SEGRO’s ownership, the site will be developed into a strategic rail freight interchange along with up to 3.6m sq ft of sustainable logistics warehousing, including ancillary B1 and B2 warehouses.
SEGRO already has planning permission from the secretary of state for the development. The industrial REIT said the development would form a “key part of the UK’s modal shift from road to rail”, as well as help the country meet its net zero ambitions.
Works are expected to start on site in this summer, with initial focus on creating the rail connection and preparing the site for development.
It is expected that the completed scheme will create around 4,000 jobs, with a further 500 jobs generated on site during construction.
The development will incorporate a 247-hectare country park surrounding the terminal. The park will include a 10-mile network of footpaths and recreational features including a trim trail, outdoor gym, new children’s play areas, new bird watching hides and a visitor interpretation centre.
More than 4,000 trees and 132,000 saplings will be planted, while the local habitat will be enhanced by creating new ponds and nesting sites.
SEGRO has also committed to an investment programme to fund new traffic-relieving measures, including £22m to fund a new 1.4-mile stretch of relief road for Park Street and Frogmore to alleviate traffic on the A5183. It is estimated that the completed scheme will deliver around £12m each year in business rates.
David Sleath, chief executive at SEGRO, said: “The former Radlett Aerodrome site offers a rare opportunity to bring together the economic and environmental benefits of rail freight, provides connectivity to key arteries of the highways network and access to a large pool of employees.
“The scheme will also benefit the national and local economies, as well as help satisfy the demands of consumers and businesses for the sustainable movement of the goods and services we increasingly rely on in our daily lives.”
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