Workspace Group has announced a £51 million deal for the sale of seven acres of land at the Biscuit Factory in Bermondsey to the Duke of Westminster’s Grosvenor  Britain & Ireland company.

The deal relates to seven acres of the 11-acre site. Workspace obtained planning consent in May 2013 for 800 new homes  together with new business space.

Grosvenor already owns a three acres site at the nearby former Southwark College campus in Keetons Road which was sold by the new LeSoCo college earlier this year.

Peter Vernon, chief executive of Grosvenor Britain & Ireland, said:   “This is a very exciting opportunity for Grosvenor to help transform two currently underused sites in a vibrant London location, through a mix of new homes, community facilities, public spaces, and retail links complemented by Workspace’s innovative business hub.

“In addition to owning and managing great places in central London, our team has delivered large scale place-making projects across the UK for many years.

“We have exciting community developments in Barton, Oxford; Springside, Edinburgh; Liverpool and in Cambridge.   This site in Bermondsey is an opportunity to use these skills to build and manage much needed housing for London too.”

Grosvenor Britain & Ireland says it will now consider the two sites together before consulting the local community on its development plans.

Under the terms of the Biscuit Factory agreement with Grosvenor, Workspace will receive £51 million in cash. £48 million will be payable on a phased basis as vacant possession is achieved on the 7 acres of land being sold for the residential redevelopment.

Full vacant possession is expected to be achieved by January 2016. A further £3 million in cash will be payable on completion of each stage of the redevelopment.

Grosvenor will  construct for Workspace a new commercial building (with 47,000 sq ft of net lettable space) at an estimated cost of £11 million, on the land retained by Workspace. This increases the amount of business space at the Biscuit Factory  to 270,000 sq.ft.

Grosvenor will also be responsible for all required infrastructure improvements, including landscaping and the creation of a community park on a further 1 acre of the site being sold to Grosvenor.

“This is another milestone for Workspace in its redevelopment activity,” said Jamie Hopkins, chief executive officer of Workspace Group.

“We are delighted to have a partner of the calibre and track record of Grosvenor to take forward the residential component of the redevelopment.

“Once completed this will be a thriving residential and business location, providing Southwark with its largest hub for small and growing businesses. This partnership will deliver significant value for our shareholders and considerable benefit to the local community.

“London has the opportunity to become the entrepreneurial capital of the world.  It is important that we continue to redevelop sites like this across London, that will attract people and businesses who are looking to live and work in dynamic locations with good transport links at the centre of the city.”

Comments are closed.