Global investor, Cain International and commercial real estate developer, Firethorn Trust have today announced a joint venture arrangement to deliver a 17-acre logistics development in Southall, West London.
Following the purchase by Cain earlier this year of Firethorn’s seven-site UK logistics portfolio, this latest transaction will see the two parties share ownership of the Southall site, representing the strength of the opportunity and the continued demand for prime industrial logistics developments in major urban locations. Construction and property development firm, C J O’Shea will also form part of the partnership with a minority stake in the development and will provide strategic advice throughout its delivery.
As with all existing schemes with Cain, Firethorn will lead the planning process and will run the development, once planning has been achieved. The current masterplan will see the delivery of circa 300,000 sq ft of new logistics warehousing, making it one of the largest industrial developments in Greater London.
Historically the home of the former “Honey Monster” breakfast cereal factory, the site is situated in a highly accessible and strategic location within the M25, providing excellent access to road, rail and motorway networks, enabling the site to service Central London and surrounding areas.
Located within the London Borough of Ealing, an area that is currently undergoing significant regeneration and redevelopment, the site provides access to a strong and concentrated labour force, a wide consumer base and a high level of surrounding amenities.
Daniel Harris, Senior Managing Director and Head of European Investment for Cain International said: “The Southall site presents a strategic opportunity to grow Cain’s UK logistics platform by working with trusted partners to deliver an exciting urban logistics development in a prime London location to an undersupplied market. We look forward to working with Ealing Council and Firethorn Trust on a plan to reset the balance of Southall-based property development by refocusing on the area’s employment opportunities for both today’s workforce and for future generations in an effort to build upon and sustain the vibrancy of the economy of this part of London.”
Peter Mather, Partner of Firethorn Trust said: “Firethorn has a proven track record of acquiring and delivering highly sustainable, best in class real estate across the UK. Given the limited supply of Grade A mid-box logistics accommodation in the West London market, we are pleased to be part of this significant off-market opportunity. This deal marks an important new chapter in our relationship with Cain, demonstrating our abilities to maximise prime development opportunities in targeted locations to meet the increasing demand for institutional quality logistics warehousing.”
Cushman and Wakefield and Eastdil Secured acted as commercial advisors for the joint venture. Ashurt and Simmons and Simmons provided legal advice