Gazeley Properties - Industrial Development - Thatcham, Colthrop Mill

Date: 15 Jan 2001

The British Land Company PLC and Gazeley Properties Ltd have formed a 50/50 joint venture company to purchase and develop two sites – located in the Thames Valley and the West Midlands – totalling approximately 32.4 hectares (80 acres). The intention is to develop primarily distribution and industrial accommodation and it is anticipated that the sites will have a combined end development worth in excess of £120 million.

The new company, BL Gazeley Ltd, has purchased the 14.6 hectare (36 acre) Colthrop Mill site in Thatcham, near Newbury, for around £17 million having identified the opportunity to acquire one of the very few Thames Valley sites capable of accommodating large footprint industrial buildings close to the M4, between the M25 and Swindon. The site will either be developed for in excess of 65,030 sq m (700,000 sq ft) of industrial/distribution accommodation, on a plot by plot basis with buildings generally in excess of 9,290 sq m (100,000 sq ft), or alternatively as a single pre-let distribution unit of around 61,314 sq m (660,000 sq ft). Strong tenant interest for both proposals has already been identified.

In Redditch, the joint venture has purchased 17.8 hectares (44 acres) of undeveloped land at the Ravensbank Business Park for around £12 million from Celexa. Outline planning consent exists for up to 68,282 sq m (735,000 sq ft) of industrial/distribution and office accommodation. The site and the individual plots are already fully serviced and ready to be developed.

Again, there is encouraging tenant demand and BL Gazeley is pleased to announce that a pre-let of 106,835 sq m (115,000 sq ft) has been agreed with S P Group Ltd which is to take a 20 year lease at a base rent of £60.28 psm (£5.60 psf) with the potential to take on additional expansion land in the future. Work on site has already commenced and practical completion is expected to be in April (2001).

FPD Savills acted for the joint venture in the purchase of Ravensbank and is to be retained as letting agent for the scheme along with Brown Harknett. DTZ Tie Leung acted for S P Group Ltd. Holley Blake acted on the acquisition of Thatcham and has been retained as letting agent.

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