London investor-developer Avanton has secured planning permission for the redevelopment of industrial complex Culvert Court in London’s Battersea, following acquisition of the site in June 2022.
As the first logistics site in the firm’s investment portfolio, the consented plans provide for a modern complex with a completed GDV of £30 mln (€34 mln).
Located at 105 Culvert Road in Battersea, the existing site provides 128 micro-units, totalling 22,000 ft2, a mixture of storage and small workshop units. The redevelopment will deliver larger purpose-built industrial units to maximise available space and efficiency on site for tenants. The new site will provide 36,500 ft2 of multilevel logistics offering flexibility to adapt the spaces as required by an occupant.
Wandsworth Council granted Avanton full planning permission for the redevelopment in January 2023. Avanton is ready to commence construction shortly and is in conversation with various specialist contractors for the construction contract. Contractors are being asked to provide a zero waste strategy statement and their ESG credentials are a key factor in the selection process. The development will provide solar panels and Air Source Heat Pumps as part of its sustainability standards and is planned for completion in H2 2024.
Avanton has also begun the tender process to appoint lettings agents to secure occupiers for the completed space.
The site was acquired with a net initial yield of 7.5%, at a time when yields on comparable sites substantially lower. Avanton is forecasting an increased annual income in the region of £1.35 mln once stabilised for the new property. The current lender Ingenious Real Estate is supporting the development finance as well.
Omer Weinberger, CEO of Avanton said: ‘We are already experiencing strong interest from occupiers and will be shortly bringing the site to the market to secure pre lettings ahead of completion of the development next year.’
