SEGRO plc Europe’s largest listed owner, asset manager and developer of industrial property, has acquired a 20-acre prime development site in Purfleet, east of London, from Savills IM. This latest signing is part of the company’s plan to replenish its strategically located land bank and drive growth through development.
London has reached its highest population levels ever and in the next 15 years it is set to grow by the equivalent of the population of Leeds and Birmingham combined.
Half of this growth is forecast to take place in East London which has been recognised by the Mayor of London as an opportunity area for regeneration and redevelopment.
The newly acquired land is positioned adjacent to the A13 corridor between the London boroughs of Barking and West Thurrock, and is a long established industrial and warehousing location.
It is inside the M25 and in close proximity to Junction 31 of the M25, from which the wider South East can be serviced.
The ongoing boom in internet retailing, together with improving economic conditions in major markets like London, has meant that SEGRO has experienced particularly strong demand from parcel delivery companies, third party logistics operators and retailers searching for locations from which to service their customers.
The site has the potential for 400,000 sq. ft. of development and offers flexibility for the size and number of units that can be built on both a speculative and pre-let basis.
Alan Holland, SEGRO’s Business Unit Director for Greater London, said:
"This transaction is an excellent way to add to our Greater London land bank in a location where occupier demand is strong and where there is a lack of modern, high quality industrial, warehouse and urban distribution facilities.
"The deal fits with our strategy to increase our presence in East London, where our customers are looking for space to service the ever increasing population."
Andrew Yeardley, Director of Investment, Savills IM, said:
"Since securing the outline planning consent for logistics use some 14 months ago on behalf of our UK Property Ventures No.1 Fund, a key plank of our exit strategy has been to identify a developer with the vision and commitment to take this opportunity forward.
"In these respects SEGRO’s performance was responsive, clear and professional – for us they delivered what we wanted, when required."
A wide and varied range of well-known companies are based in the area, including Amazon and Sainsbury, both of whom have internet related operations in Bromley-by-Bow. Tesco has numerous units along the A13 and the area is also popular with other retailers including John Lewis, Heals, Moss Bross, Carpetright, Co-Op and Ikea.
Additionally, a substantial number of warehouses in the area are occupied by third party logistics businesses, such as DHL, Kuehne & Nagel and Howard Tenens.
SEGRO owns or manages a 63 million sq. ft. portfolio of modern warehouse and logistics properties, a third of which is located in London and the South East of England. Its portfolio is home to over 1,200 customers representing a wide variety of businesses including distribution, manufacturing and hi-tech R&D, located close to major distribution hubs and population centres in eight countries across Europe.
