A joint venture between developer Chancerygate and real estate private equity firm Northwood Investors has purchased an industrial site in Essex to speculatively build a new urban logistics facility.
The property, dubbed the Titan Industrial Estate and situated on Hogg Lane in Grays, Essex, was purchased for £50 mln (€58 mln). The JV plans to construct 430,000 ft2 (40,050 m2) of Grade A urban logistics and industrial space on the 35-acre (14 ha) plot.
Chancerygate head of development, Alastair King, said: 'This site presents an excellent opportunity for us to speculatively build a state-of-the art, sustainable business park.
'It 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.'
The site was sold to Chancerygate and Northwood Investors by 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.
Located one mile north of the town centre and five miles east of junction 30 of the M25, the JV hopes to build 28 leasehold units ranging from 5,000 ft2 to 130,000 ft2 on the land.
Chancerygate and Northwood Investors will submit its plans for the development to Thurrock Council in the autumn.
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.'
Founded in 1995, Chancerygate is the UK’s largest multi-unit urban logistics property developer and asset manager and the only one operating nationwide.
Northwood Investors is a privately held firm that owns and operates real estate across the US and Europe.
Chancerygate and Northwood Investors were advised by DTRE.
