Chancerygate and CBRE Investment Management (CBRE IM) have started work on a new 93,000 sq ft Grade A urban logistics development on Croydon’s Factory Lane which could create around 150 jobs.
Called The Works, the development will comprise 15 leasehold units ranging from 2,000 sq ft to 16,000 sq ft with the option to combine units.
The scheme is being delivered by Chancerygate and CBRE IM on behalf of a fund sponsored by the firm.
Located on the outskirts of Croydon town centre, the Factory Lane site is 10 miles south of central London and benefits from excellent access to the A23, A232 and M25. Neighbouring occupiers include a Tesco distribution centre, Sainsbury’s, Royal Mail and Decathlon.
All properties at The Works will feature electric vehicle charging points along with solar cells which provide green energy on an affordable basis to occupiers. In addition, the units will be constructed from high-performance building materials to reduce CO2 emissions.
The scheme is targeting a BREEAM accreditation of Excellent and for all units to achieve an EPC A+ rating as a minimum.
Chancerygate development director, Tom Faulkner, said: “There’s strong demand for high quality, sustainable urban logistics accommodation within Croydon and the South London area.
“The Works is the first multi-unit urban logistics scheme to developed in Croydon for 10 years targeting SMEs and will help satisfy this demand while allowing occupiers to benefit from its close proximity to key infrastructure links.
“It is also a strong example of how we are turning a disused brownfield site in an established industrial location to new employment land, creating local job opportunities and stimulating regional growth.
“We now look forward to practical completion and delivering much-needed Grade A urban logistics units into the market and a lasting economic asset for Croydon.”
Tom James, Head of UK Transactions from CBRE IM, said: ““This project represents a strategic investment in a high-demand area, offering modern, sustainable space that aligns with our commitment to deliver long-term value creation for our investors. The Works will provide state-of-the-art facilities with excellent connectivity.”
Agents for The Works are Cushman & Wakefield and Stiles Harold Williams.
Alex Gale, Senior Partner, SHW, says: “SHW are excited to be one of the joint sole agents on this scheme and to be offering the next generation of logistics units to the South London market. Being electric only, offering up to 850Kva and an innovative green wall, the unit has future proofed the occupation for the first tenant. With a number of viewings already having taken place, we expect an early deal to be secured.”