UK industrial property developer Chancerygate and Northwood Investors have teamed up to buy a 35-acre site to speculatively build 430,000sqft of urban logistics and industrial space.

The joint venture has acquired the Titan Industrial Estate on Hogg Lane in Grays in Essex for £50m (€59m) from chemical manufacturer and distributor Industrial Chemicals Group (ICGL).

The site currently houses an IGCL manufacturing facility which is surplus to requirements and will be closed down over the next 12 months after which it will be demolished for the new development.

The pair intend to 28 leasehold units ranging from 5,000sqft to 130,000sqft on the land.

Alastair King, the head of development at Chancerygate, said the business park will provide much-needed smaller urban logistics and industrial units in a local and regional market dominated in recent years by big and mid-box development.

“The development’s proximity to the M25 means future occupiers will be best placed to serve Essex, East London and the wider Greater London conurbation.

“Our proposed development of high specification, sustainable industrial accommodation will contribute to the economic growth of local economy and stimulate further investment and job creation supplying units ideally suited to local SME companies.”

John Carver, director at ICGL said: “After 40 years on-site, we have collectively decided at ICGL to sell Titan Works to pave the way for our expansion at West Thurrock, which will become our new headquarters and one of two mega sites for IGCL in the UK.”

Bruno Jaczkowski, founder of Land 3.0, who acted on behalf of ICGL along with Montagu Evans, said: “This fantastic future development demonstrates how urban regeneration is beyond simply housing. In this case, multiple enterprises and future career opportunities will be created.”

Tom Paton-Smith, a partner at Montagu Evans, said: “Montagu Evans have again demonstrated best value for their clients through leveraging upon their industrial and land expertise.”

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