Tritax Big Box REIT plc (LON: BBOX) today provided the following update on progress with the Company’s c.114 acres of prime London development land at Littlebrook, Dartford, within the M25, which was acquired in July 2017.
The Company announced that it has successfully secured planning permission from Dartford Borough Council for the proposed development of a 450,240 sq ft cross-docked logistics facility with a clear internal height of 21 metres. The proposed development of the asset is on 28.6 acres of Phase 1 land and this planning permission consolidates planning consents from other parts of the site.
The marketing campaign, which formally commenced recently, has already attracted a healthy level of enquiries and the Phase 1 planning consent is expected to heighten interest further. The Company is targeting a yield on cost on Phase 1 in excess of 6.5%.
The Littlebrook site represents one of London’s largest big box logistics parks and is in a core South East “Last Mile” location on the edge of London and inside the M25 orbital motorway. It has excellent road and port connectivity and can support the potential development of approximately 1.7 million sq ft of logistics distribution buildings, including several big box logistics facilities, together with some smaller urban logistics facilities. By developing buildings on a pre-let basis only on this site, the Company aims to add new high-quality investments to its portfolio over the coming years at an attractive yield on cost, whilst minimising risk.
Demolition of both Phases 1 and 2, which total approximately 54 acres, has now completed on time and on budget. An important part of the demolition process is ensuring that as much of the demolished material as possible is recycled. To date, a recycling level of over 98% has been achieved across the site.
The demolition of Phase 3, which includes the main power station and its associated infrastructure, is continuing and is on track to complete in early 2020.
Discussions are now ongoing with Dartford Borough Council for a separate application for outline planning consent on the balance of the site.
Colin Godfrey, Partner of Tritax, commented:
“Working alongside our development partner, Bericote Properties, we are delighted to have been granted planning permission for the first development phase of this exciting Big Box logistics park within the M25 at Dartford, London.
The development team look forward to continuing to build on the positive working relationship established with Dartford Borough Council to progress discussions to secure planning consent for the development of the balance of this site. We anticipate being able to provide additional new high-quality investments on a pre-let basis to the Company’s portfolio over the coming years at an attractive yield on cost.
Our continuing phased capital investment programme will in time bring new jobs to the site as well as the wider area.”
