Home Residential PropertyLuxury Property Leading London investor-developer Avanton secures planning for £30m warehouse complex on Culvert road Battersea

Leading London investor-developer Avanton secures planning for £30m warehouse complex on Culvert road Battersea

by LLP Editor
22nd Feb 23 4:37 pm

Leading London investor-developer Avanton has secured planning permission for the redevelopment of industrial complex Culvert Court in Battersea, following acquisition of the site in June 2022. As the first logistics site in their growing investment portfolio, the consented plans provide for a modern complex with a completed GDV of £30 million.

Located at 105 Culvert Road in Battersea, the existing site provides 128 micro-units, totalling 22,000 sqft, a mixture of storage and small workshop units. The redevelopment will deliver larger purpose-built industrial units to maximise available space and efficiency on site for tenants.

The new site will provide 36,500 sq.ft. of multilevel logistics for Class E and B8 use. There will be three modern industrial buildings, with unit sizes ranging from 2,150 sqft to 5,860 sqft located over ground, first and second floors. Building One offers a total of 13,340 sqft. The multi-storey accommodation will offer flexibility to adapt the spaces as required by an occupant.

Wandsworth Council granted Avanton full planning permission for the redevelopment in January 2023. The new design uses grey metal cladding with yellow powder-coated shutter doors and grey brick, designed by Boehm Lynas Architects and has a BREEAM “Outstanding” rating for sustainability, the highest possible rating for a development of this kind.

Culvert Court has quick access to Battersea Park Road (A3205), as well as good connections across South London. It is walking distance from Battersea Power Station (Northern Line), as well as Queenstown Road Station (South-Western Rail) and Battersea Park Station (Southern Rail). It is extremely attractive to occupiers, given its sustainability credentials, being located in the ULEZ but outside the congestion zone.

Avanton is ready to commence construction shortly and is in conversation with various specialist contractors for the construction contract. Contractors are being asked to provide a zero waste strategy statement and their ESG credentials are a key factor in the selection process.

The development will provide solar panels and Air Source Heat Pumps as part of its sustainability standards. The site is set to be finished in H2 2024. Avanton has also begun the tender process to appoint lettings agents to secure occupiers for the completed space.

Given its central location and proximity to residential estates, the site could appeal to last mile delivery services and variety of local business needs (including catering, storage and business expansion). The close road and rail links also give the site appeal for regional operators. There is scope for a single operator to lease the entire complex if required.

The acquisition and redevelopment of Culvert Court is essential for Avanton’s long-term investment strategy is sourcing and optimising sustainable sites across the capital.

The site was acquired with a net initial yield of 7.5%, at a time when yields on comparable sites substantially lower. Avanton is forecasting an increased annual income in the region of £1.35 million once stabilised for the new property. The current lender Ingenious Real Estate is supporting the development finance as well.

At a time when the logistics market is suffering from undersupply, Avanton is confident in the site’s appeal to occupiers. There has been a rise in demand for warehousing in inner-city locations to meet the speed of modern consumer demands, coupled with London losing almost a quarter of its industrial space over the last 20 years (Centre for London report, Jan 2022).

There is a significant supply-demand imbalance for logistics sites in inner London, with Culvert Court set to deliver sought-after modern space to occupiers.

Omer Weinberger, CEO of Avanton said, “We are very pleased to have secured a planning permission granted by Wandsworth Council for our Culvert Court site.

“This logistics site has fantastic potential, with a range of unit sizes and good accessibility. There is a shortage of inner city warehousing especially, and our new logistics complex will meet some of this demand.

“Our investment appetite is not limited to residential development and this site presented an unmissable opportunity.

“We are already experiencing strong interest from occupiers and will be shortly bringing the site to the market to secure pre lettings ahead of completion of the development next year.”

For further information on Culvert Court, please contact Avanton at [email protected]

Leave a Comment

You may also like