An opportunity to build a £100m industrial or logistics scheme on land in a prime spot south of the river Thames is up for grabs.
The Greater London Authority, GLA’s development arm, Land & Property, is looking for a developer-led team to build on two freehold sites on 75 Bugsby Way on Greenwich Peninsula.
London’s mayor Sadiq Khan said: “The site has the potential to deliver three-storeys of industrial accommodation. Soft market testing has demonstrated a strong interest in the site from potential partners.”
Scheme to offer jobs boost for area
The multi-storey development would need to have a wide range of unit sizes and types including SME space providing employment opportunities for the local community.
A façade design reflective of the innovative nature of the building would be needed as well as sustainability during and after construction.
Achieving the commercial value of the site as well as meeting prospective tenants’ demands are among the key procurement objectives.
Menzies Distribution centre is currently based on the 3.38-acre site, but the GLA believes there is potential for more intensive industrial or logistic activity.
Khan said a preferred development partner would be selected in spring next year and would be invited to negotiate a 250-year leasehold to the land. A target start date of the summer of 2024 is expected for the project.
The successful developer would need to find tenants to generate a return and would be asked to pay at least half of the total £106,943,267 value upon completion. The remaining amount would be due as a variable payment to be settled within five years of finishing the scheme.
Development finance intermediary Hank Zarihs Associates said the spot was in a key London location with strong links to central London and the M25 making it attractive to development finance lenders to back.