Orchard Street Investment Management (‘Orchard Street’), the specialist commercial property investment manager, announces that, on behalf of St James’s Place UK Plc, it has completed the forward purchase of the development of a distribution warehouse in Belvedere, South East London for £11.3 million from Buccleuch Property and Wrenbridge Land.
Planning permission for a standalone 68,360 sq ft industrial development on the 3.8 acre site was obtained by the vendors in August 2017. Construction of the Grade A warehouse, named the Axion Building, commenced in December 2017 with practical completion being achieved in October 2018.
The Axion Building benefits from a prime industrial location, situated in close proximity to the Docklands, central London and the M25, making it strategically placed for both regional and urban distribution. Existing occupiers within close proximity to the site include Amazon, Ocado, Asda, Tesco and Lidl. This, together with its BREEAM “Very Good” rating ensuring low running costs and high environmental sustainability, makes the asset highly attractive to a diverse range of potential occupiers.
Richard Walters, Partner at Orchard Street, commented: “Our forward-purchase of the Axion Building provided the unique opportunity to acquire a prime warehouse asset in a supply constrained market at an attractive entry price based on our asset management expectations. This site is located within Greater London’s key industrial hub which demonstrates positive growth prospects underpinned by high demand from companies looking to serve their last mile delivery requirements, leaving us confident it will let well.”
Neil Finnie of Buccleuch Property, said “We are delighted to have achieved practical completion of this development. During the planning, design and construction phases, the focus was always on delivering a high quality asset. The strength of the location and occupier demand for this sector was underlined by our ability to acquire the site without planning consent and then to secure £6m of construction finance from Royal Bank of Scotland.”
Ewen McLeod of Wrenbridge, said: “Belvedere is a proven location for logistic operators and the new unit looks impressive and benefits from outstanding prominence to Bronze Age Way. It has been a pleasure working with Buccleuch and Orchard Street Investment Management on this one and we’re confident it will let well.”
Orchard Street was advised on the acquisition by Glenny, while the vendors were advised by Stonehill Partners. Letting agents for the scheme are CBRE and Glenny.