UK logistics specialist Tritax Big Box REIT has purchased a development site in Dartford, southern England for £65 mln (€73 mln).
The freehold of the former Littlebrook Power Station site has been acquired with company equity, supporting the potential development of 1.7 million ft2 (158,000 m2) of logistics distribution buildings, including several big box facilities exceeding 400,000 ft2 (37,000 m2).
The vendor of the site was not identified.
'Large strategic sites for big box distribution buildings within the M25 are scarce and are in strong demand from occupiers,' commented Colin Godfrey, partner of Tritax. 'The site is capable of supporting several big box distribution facilities as well as smaller urban logistics facilities for serving the London and South East markets in particular.'
Part of the site benefits from existing storage and distribution planning consent for around 517,000 ft2 (48,000 m2) of the expected 1.7 million ft2 total.
Working in partnership with UK specialist logistics developer Bericote Properties, Tritax intends to apply for planning consent for the remaining land.
Godfrey added: 'The development of the buildings, in partnership with Bericote, will only commence on a pre-let basis and provide an opportunity for the company to enhance our existing portfolio with further prime logistics investments at an attractive yield on cost.'
The company aims to commence building construction in phases by autumn 2018.
Jefferies advised Tritax on the deal.
