Investor funds Croydon multi-let industrial scheme

By Liza Helps, Property Editor, Logistics Matters

THE SCHEME, called The Works, is being brought forward by CBRE Investment Management and Chancerygate and will see the speculative development of three buildings comprising 15 units ranging in size from 2,400 ft2 – 16,000 ft2. The units can be combined to form larger spaces.

The project will aim for a minimum of BREEAM Excellent and EPC A+ certifications. It will also incorporate EV charging spaces, 76 cycle slots and photovoltaic panels on all units.

The senior loan from Investec is the first transaction with CBRE IM while Chancerygate is a longstanding client that currently has around 1.41 million ft2 of urban logistics space under construction or ready for development at 11 sites across the UK.

The Works is located in a predominantly industrial area to the north-west of central Croydon and ten miles south of central London. The site benefits excellent arterial connectivity via road and rail and is nine miles from Junction 7 of the M25 motorway.

A report from the Industrial Land Commission in 2022 revealed that over the last 20 years, London had lost a quarter (24 per cent) of its industrial floorspace, the equivalent to 840 football pitches. New supply within the inner M25 region remains constrained with less than two years of supply across most size bands and Grade A comprising just 40% of currently available space, despite it accounting for the majority of demand^[1].

Investec’s Tom Griffiths said: “Take up for sustainable, well connected I&L space in London, where proximity to the capital’s nine million residents and one million businesses is crucial for occupiers, remains robust. With increasing competition from alternative land use, in particular new housing, squeezing new supply, the rental growth prospects for the sector remain very compelling.”

CBRE IM Team Lead Treasury & Debt Financing Senior Director Tom Berens, said: “We continue to see attractive returns in the logistics sector when delivering sustainable, high quality assets in areas with constrained supply.”

Chancerygate chief financial officer Michael Treliving, added: “The Works is the first multi-unit urban logistics scheme to be developed in Croydon for 10 years and will help meet the region’s demand for high-quality, sustainable accommodation.

“We’re very pleased to once again have Investec’s trusted support for one of our developments. Most importantly, it further enables the ability of our partnership with CBRE IM to deliver a nationwide portfolio of much-needed urban logistics assets.” 

CBREIM and Chancerygate recently submitted proposals for a 105,000 ft2 of Grade A urban logistics space on a five-acre site near the Salford Community Stadium in Eccles.

Located on Stadium Way, the proposed BREEAM rated Excellent scheme will comprise nine leasehold units ranging from 6,150 ft2 to 23,500 ft2.

Logistics Matters first reported on the scheme last year. 

Letting agents at The Works are SHW and Cushman & Wakefield.