Croydon (Parliament Politics Magazine) – Logistics specialist Chancerygate and CBRE IM secure £18m loan from Investec Bank to develop ‘The Works’, a 93,000sq ft Grade A industrial scheme in Croydon.
Last month, work on The Works began. Three structures divided into fifteen units will make up the finished concept.
According to the joint venture, these will be “ideally suited” for third-party logistics and distribution occupiers and will range in size from around 2,400 square feet to about 16,000 square feet, with the ability to combine units.
The project aims for all units to have at least an EPC A+ rating and a BREEAM Excellent certification.
76 safe bike parking spots, EV charging stations, and PV panels on every unit—all of which are made with materials that optimize energy efficiency—are among the features.
Ten miles south of downtown London and northwest of central Croydon, The Works is situated in an overwhelmingly industrial area.
The location is nine miles from the M25 motorway’s Junction 7.
At 11 locations throughout the UK, Chancerygate now has about 1.41 million square feet of urban logistics space under construction or ready for development.
According to a 2022 Industrial Land Commission assessment, London has lost a quarter (24%), or 840 football fields, of its industrial floorspace in the past 20 years.
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.
Tom Griffiths, Investec director, commented:
“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.
This latest facility kickstarts an exciting new relationship with a major institutional manager in CBRE IM and furthers our strong, long standing relationship with Chancerygate, building on the Real Estate team’s considerable track record funding best-in-class, experienced counterparties operating in the small to mid-box industrial market.”
Tom Berens, CBRE IM senior director, said:
“Securing this loan marks a significant milestone for our fund’s growth ambitions. We are delighted to team up with Investec, further strengthening their long-term relationship with our JV partner Chancerygate.
We continue to see attractive returns in the logistics sector when delivering sustainable, high quality assets in areas with constrained supply.”
Michael Treliving, chief financial officer at Chancerygate, added that 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.
They are 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.
What are the key features of the Works?
Situated in Croydon on Factory Lane, the location provides convenient access to important roads such as the A23, A232, and M25. Logistics and distribution firms find it to be a desirable site because it is roughly ten miles south of central London.
The 93,000 square foot property will be split up into three towers, each housing 15 units that range in size from roughly 2,400 to 16,000 square feet. To accommodate larger tenants, units might be merged.
A BREEAM Excellent certification and an EPC A+ rating for every unit are the project’s goals. High-performance building materials to lower CO2 emissions, solar panels, and charging stations for electric vehicles are among the features.
It is anticipated that the development would contribute to local employment possibilities by creating about 150 jobs.