Real estate investment manager Barings and property developer HBD have acquired a strategically located logistics development opportunity in Rainham, London. 

The 20.5-acre site has outline planning for B1c, B2 and B8 uses and the joint venture plans to build a large to mid-box scheme totalling circa c. 368, 000 sq. ft. with design and build opportunities being considered.

The redeveloped site will aim to provide new high specification, sustainable industrial and logistics units, including enhancements to the River Thames waterfront and cycle path. 

Darren Hutchinson, Managing Director, Head of UK Real Estate Transactions at Barings, said: “This acquisition presented us with an exciting opportunity to create a brand new, high quality logistics hub in an area with significant undersupply of suitable stock but still within close proximity to central London.”

Work is due to begin next year and, once completed in 2023, is expected to have a GDV of over £100 million.

Vivienne Clements, Executive Director at HBD, said: “During the last year, our team has delivered over 1.1m sq. ft. of I&L space, with a future development pipeline now sitting at £1.4bn - this latest project in Rainham is a fantastic development opportunity that will inject much-needed space into the London market.”

Adrian Schofield, Senior Director and Head of Region at HBD, added: “Industrial space in London remains severely constrained, yet demand continues to grow - particularly for urban logistics. 

“The proposed new development will provide further capacity to support East London, and we look forward to transforming the site into a modern, high-spec scheme with sustainability at its heart.”

HBD are a 20 per cent partner, whilst Barings own an 80 per cent stake in the project.