Industry returns to East London as over 275,000 square feet of new industrial space opens for business
Potential for 4000 jobs and economic investment by 2026, construction complete at SEGRO Park Rainham and SEGRO Park Newham 100% pre-let within two years of SEGRO signing development agreement with the GLA
The Greater London Authority (GLA) and SEGRO are today celebrating the significant and tangible progress made across the East Plus industrial portfolio in the two years since the organisations signed the unique partnership agreement, with one park fully constructed and another park fully let ahead of completion.
With London’s population set to increase from 8.7m to over 10m by 2030 the demand for goods and services has never been greater. The regeneration of the East Plus portfolio will play a vital role in delivering jobs, providing modern industrial space for business and servicing the needs of a growing city.
The GLA released its brownfield land for development to the market in 2015 and following an exhaustive tender process, selected SEGRO as its exclusive development partner to regenerate 86 acres of brownfield industrial land.
The East Plus portfolio spans five vacant and underused sites across the London Boroughs of Havering, Newham and Barking & Dagenham - once heartlands of industry – but all have since experienced high levels of deprivation and underemployment when old industries downsized or relocated.
Since 2016, momentum has been growing at East Plus. Over 275,000 sq ft of modern employment and industrial space has been built providing flexible and bespoke accommodation for a wide range of small, medium and large businesses.
To demonstrate the progress made, SEGRO’s Chief Executive, David Sleath hosted GLA Deputy Mayor James Murray on a tour of two of the five sites, SEGRO Park Newham and SEGRO Park Rainham.
At SEGRO Park Newham, David was joined by Kim Bromley-Derry, Chief Executive of Newham Council and DPD’s UK Chief Executive Dwain McDonald who showcased their new 45,207 sq ft urban logistics depot facility and officially declared it open.
In addition to the launch of the DPD facility, it was also announced that SEGRO Park Newham was fully let after DHL, the logistics company, had agreed a 25-year lease on a 51,500 sq ft which it will use as a parcel delivery and urban logistics centre.
The pace at which the two parcel delivery operators have signed up to SEGRO Park Newham demonstrates the increasing need for businesses to be strategically located close to their customers in inner London, in order for them to meet consumer demand for quick and efficient delivery of goods.
Joining the parcel operators at SEGRO Park Newham, budget operator Travelodge has signed a 25-year lease for a 113 bed hotel which is already under construction and due to complete in early 2019, bringing new amenity to the previously vacant site.
During the second part of the tour at SEGRO Park Rainham, over 80 guests were invited to view a film about the positive impact the regeneration of the East Plus portfolio had had on local businesses and the community, including a fund to support grass root community projects. Over 1000 local residents have been supported to improve their employment chances through education and training.
SEGRO Park Rainham is the first industrial park to reach practical completion and has a BREEAM environmental rating of ‘excellent’. It includes an Enterprise Quarter with 42 units ranging from 500 sq ft to 2,000 sq ft, designed to attract and grow start-up and small businesses. Five business have already signed leases for space from which to operate.
SEGRO Chief Executive, David Sleath, said:
“Today we are celebrating the progress made so far at East Plus, with construction and lettings ahead of schedule and with strong interest from potential occupiers of all sizes – from start ups to global giants. There is huge demand for high quality industrial space in strategic locations in East London and we are grateful to our partners, who are helping make the renewal of this part of the capital an exciting new reality.
“In the rush to build tens of thousands of new homes in London we must not forget that the families who move in will need jobs close to where they live. Sustainable regeneration means that there must be high-quality, employment spaces alongside new homes.
“Further, over the next 20 years London will need much more industrial space for ecommerce and logistics in order to keep the capital’s economy running. Light manufacturing and tech will also support an increasing number of London jobs – these businesses have particular accommodation needs which must be met for them to thrive.”
James Murray, London's Deputy Mayor for Housing and Residential Development, said:
"This project is a vote of confidence in our capital's industrial future, delivering decent jobs close to where Londoners live and demonstrating that London is open for business. The Mayor is working hard to unlock London's land for housing and employment, and to make sure all Londoners can benefit from the jobs and homes we create."
SEGRO is planning to deliver 480,000 sq. ft. in the next three to four years with five schemes coming forward in the London Boroughs of Rainham and Barking & Dagenham.
SEGRO is a UK Real Estate Investment Trust (REIT), and a leading owner, manager and developer of modern warehouses and light industrial property. It owns or manages 6.7 million square metres of space (72 million square feet) valued at over £9 billion serving customers from a wide range of industry sectors. Its properties are located in and around major cities and at key transportation hubs in the UK and in nine other European countries.
See www.SEGRO.com for further information.