A joint venture (JV) between Chancerygate and SGN Place – the property development arm of gas distribution company SGN – has exchanged contracts to acquire a 4 acre (16,000 m2) site in Croydon.
The deal marks the first JV between the partners, who plan to speculatively develop 95,000 ft2 (8,000 m2) of Grade A industrial and warehousing space with a gross development value of £25 mln (€29 mln).
Chancerygate development director, Jonathan Lee, said: 'We’re very pleased to have entered into this JV with SGN Place on the Factory Lane site. We are excited to bring forward our plans for a first-class industrial scheme in an excellent location.
'As far as we are aware, there has been no speculative development of freehold multi-unit industrial sites in Croydon for more than 10 years. There is, therefore, very high demand from many different types of business operating in and around the area wanting to own high-quality, new build industrial space.
'We’re confident our development will be best placed to satisfy that demand and become a thriving part of Croydon’s commercial infrastructure, especially as we expect it to create more than 100 jobs.'
Subject to planning approval, the scheme will comprise 14 units ranging from 1,000 ft2 to 17,000 ft2. All units will be available on a freehold and leasehold basis.
Located on the outskirts of Croydon town centre, the Factory Lane site is 10 miles south of central London and provides good access to the A23, A232 and M25. SGN had originally acquired the site from National Grid Transco and has now unlocked the land for development as part of a rationalisation of its portfolio.
Founded in 1995, Chancerygate is the UK’s largest multi-unit industrial developer and asset manager and the only one operating nationwide.
The company currently has up to three million ft2 of industrial space under construction or ready for development across 23 sites ranging from Bournemouth to Edinburgh. In addition to London, Chancerygate has offices in Milton Keynes, Birmingham and Warrington.
SGN Place operations and land quality manager, Scott Lewis, said: 'This is a great opportunity to redevelop unused brownfield land and turn what was a redundant gas holder site into a first-class industrial scheme which will greatly benefit the local area.
'Working with our partner Chancerygate, we look forward to bringing this scheme forward, helping the local community through the creation of jobs and revitalising this site.'
Property agents Cushman & Wakefield advised SGN Place on the site acquisition. Cushman & Wakefield and Stiles Harold Williams will be the retained agents on the development.