Savills IM and First Industrial commit to UK shed

Announcing the first phase of a new project at Belvedere Wharf in Bexley, south east of the capital, the companies said that the deal signified their 'belief in the strength of the South East Industrial market post-Brexit'.

Having recently-secured planning consent for the project, construction is set to commence in January 2017 on an industrial/distribution warehouse unit totalling 8,051 m2, with practical completion due in September 2017. A further unit of 9,728 m2 is available on a build to suit basis.

'It’s exciting to be able to unlock the potential at this site that was acquired off-market in 2015. We strongly believe in the location and the opportunity that it presents for regeneration and growth. This is one of four strategic industrial sites that we own around London where we remain committed to both speculative and pre-let development predicated on strong market fundamentals,' commented Lucy Winterburn, director of investment at Savills Investment Management. 'With an increasing shortage of land ripe for development within the M25, we know that our development will be an attractive proposition in a market bereft of Grade A stock.'

The second phase of the project will result in the redevelopment of the adjacent 25-acre site to provide up to 60,000 m2 of industrial/distribtution space. An outline planning application is due to be submitted at the beginning of 2017.

'The decision to commence speculative development at Belvedere Wharf is a testament to the strength of the UK industrial market and how confidence remains high despite post-referendum challenges. Supply remains critically low in the South East, especially for this size range, making this a very exciting prospect for occupiers looking for this kind of space within the M25,' said Simon Jenkins, development director at First Industrial.

Savills and Avison Young have been instructed as joint letting agents.