Bouygues Development closes major regeneration project in BarkingFebruary 05th 2013
Bouygues Development has reached Financial Close on the second phase of the Barking Town Centre regeneration scheme with the London Borough of Barking & Dagenham, which will see up to 150 new local jobs created.
The mixed-use project, worth around £50 million (gross development value), will see ASDA move from its current location in Vicarage Field Shopping Centre to its new location on London Road. As well as the creation of 150 new jobs, existing staff will be transferred from the current store. The new sales floor will be some 15,000 sq ft larger than the existing store and will act as a catalyst to improve the wider retail offering in the area.
Above the supermarket will be 100 private residential apartments with a selection of retail and kiosk units at ground floor level. There will be 350 lower ground and ground floor car parking spaces for the use of ASDA and town centre shoppers with an additional 10 blue badge spaces for residents’ use. In order to facilitate efficient car park access, there will be a series of junction and highway improvements made to the surrounding network.
Funding for the development of the new ASDA store has been provided by the Aviva Investors Lime Property Fund, who has acquired a 150-year lease.
Grainger plc, the UK’s largest listed residential landlord, has agreed to purchase the private residential element of the scheme, comprising 100 units, which will be completed in 2015. This purchase follows Grainger’s recently stated strategy of taking advantage of the growing private rented sector, and creating a viable Build-To-Rent in the UK.
This first deal follows the previous announcement by Bouygues Development and Grainger to work together in order to attract institutional investment into the Build-To-Rent sector. Grainger will let the residential units and take responsibility for the asset and property management.
The development has been designed by Chetwoods Architects with Assael Architecture advising on the internal layout of the residential units and common parts to ensure the 100 units adhere to the PRS concept.
The design and build contract will be carried out by Bouygues UK. Demolition took place last year and work commenced in December 2012. The construction programme is 31 months. The build will achieve BREEAM excellent for the food store and Code for Sustainable Homes (level 4), in line with Bouygues’ global sustainability strategy.
This new project follows phase one of the regeneration included the Council’s Technical Skills Academy for people aged 14-19 years old, delivered in September 2012, and operated by Barking and Dagenham College.
This phase also delivered a landmark public square called Short Blue Place that will sit between the new ASDA store and Barking’s main shopping precinct of East Street.
Speaking of closing the contract, Nicolas Guerin, Managing Director, Bouygues Development, said:
“Bouygues Development is very pleased to have reached Financial Close on this exciting and significant stage of the regeneration of Barking Town Centre. This mixed-use project illustrates our expertise in integrating harmonously a large supermarket with a residential scheme. As a company, we will go above and beyond to support the community and look forward to working with Barking and Dagenham Council on new regeneration schemes and to employ local people and skills on this project.”
Councillor Cameron Geddes, Cabinet Member for Regeneration said:
“The successful collaboration of the council with its private sector partner, Bouygues Development, has enabled the second phase of the London Road / North Street regeneration to come to fruition. It will deliver a much larger ASDA, along with new public realm, town centre car parking, jobs and housing thereby contributing to the economic growth of the town centre to the benefit of both local residents and businesses.”
Renos Booth, Fund Manager for the Aviva Investors Lime Property Fund, commented:
“Our focus is on working with successful developers and high quality tenants in the corporate and public sectors, and the London Road scheme in Barking represents an excellent example of this. Investors in our fund will benefit from the secure and long-term income provided by such a significant tenant as ASDA in the London area. The acquisition of the store also brings the number of properties held in fund to 50 and the number of different tenants to 38, increasing the diversification the portfolio offers.”
Oliver Jones, Senior Property Communications Manager for ASDA, said:
“We’re excited at the prospect of bringing a much improved offer to our existing customers. A wider selection of goods, including George clothing, as well as wider aisles and more check-outs will hopefully tempt more people to our store and, of course, the prices won’t change.”
Nick Jopling, Executive Director for Property at Grainger commented:
“The residential element of this scheme is a significant milestone for the private rented sector, putting into practice a new model for the creation of purpose built high quality and professionally managed rental accommodation. This is a sector that desperately needs to grow in order to meet the demands of the UK population and is supported at the highest levels of Government, and we believe that this style of residential development has huge potential to grow in the coming years.”Category: Corporate news
Tags: ASDA, Aviva, Barking Road Regeneration, Bouygues Development, Housing, Housing London, London road, Nicolas Guerin, Regeneration, Residential