Rexel is selling its Dagenham freehold for a residential-led development with industrial space with a guide price of £18m.
The electrical supplies distributor has instructed Colliers International to sell the 6.13-acre site at 333 Rainham Road in the east London borough, seeking unconditional offers, following detailed planning advice from Barking & Dagenham Council.
A £175m development comprising 455 homes and 233,516 sq ft of commercial space has been proposed, with 75,347 sq ft of light industrial space, 82,822 sq ft of storage and 75,347 sq ft of offices.
Initial plans for the residential portion allow for 159 one-bedroom flats, 69 two-bedroom flats, 159 three-bedroom flats and 68 four-bedroom flats.
Agents anticipate high demand from both for-sale and built-to-rent developers.
Andrew White, head of residential development at Colliers International, said: “The vision for this site is for a residential-led, mixed-use scheme, providing affordable open-market sales units, but also creating crucial employment space for the area.”
The area has been designated as a “locally significant industrial site”, requiring that development does not lead to a loss of employment, in line with policies in the Draft London Plan.
White said: “There is pressure for the local authority to retain the commercial elements, but they understand there is housing demand and are proactive in their approach to residential development.”
He said the site would be well suited to various employment types, as well as industrial space.
“In these locations you can intensify the employment numbers and have a range of businesses, including start-ups that create more value to the local authority and the wider society.”
The site is on the corner of Rainham Road South, Oxlow Lane and Dagenham Road, close to Dagenham East Underground station and employment hubs at Coventry University, Dagenham Film Studios and multinational pharmaceutical company Sanofi.
White added: “On these large sites you can create high-density commercial space and have residential that works jointly. The key is to come up with a logical solution to suit both criteria.”
Rexel has owned the site for more than 35 years. It has 250 branches nationwide. In 2017 it decided to review the property and options for relocation, opting for a sale at the end of 2018.
Barking & Dagenham Council has a target to deliver 3,000 council homes in the next five years through its arm’s length development vehicle Be First. It has a goal of 6,800 homes to be delivered by the private sector in this period.
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