Plans for the regeneration of the sanofi-aventis site in Dagenham have moved forward with the appointment of Savills as advisers on the scheme. This is a major project on

108 acres and Mark Bass of sanofi-aventis said: “Our focus throughout the process of creating a lasting legacy has been to work with proven experts in regenerating commercial/scientific premises in an effort to transform the site into a facility that offers long term benefits to the people of Dagenham.”

Savills’ Neil Rowley commented: “Our master planning expertise will deliver a planning consent that enables such a legacy to be delivered.” Overall management of the regeneration (the existing operation ends in 2013) is with SOG Ltd. Another company, ARCADIS, has already commenced the routine clean up of the manufacturing site.

A master plan for the regeneration process is being drafted with an emphasis on creating new jobs and new business opportunities. Multiple uses are under consideration including office space, laboratory/research & development facilities, manufacturing, warehousing, retail, health and leisure. Once a major manufacturing area dominated by Ford, Dagenham has widened its business horizons. For example there are large sheds for the logistics business. Wolseley, the plumbing business, leased a 13,011 sq.metres (140,000 sq.ft.) shed in Choats Road recently. Driven by the upcoming Olympic Games, there has been considerable development in the area. Another scheme is for a Creative Industries Quarter on an industrial site close to Barking town centre on Abbey Road.

This will have a mix of residential and commercial space developed in two phases around a series of courtyards and riverside spaces that have direct links both to the existing urban developments to the east and the future sites to the west. The plans also encompass the proposed East London transit bus route and a new bridge over the River Roding.

The development, which is designed by Cartwright Pickard Architects, is due to go on site this year. It will have four blocks of 272 units of residential housing together with commercial/office, retail and creative industries uses, new ublic amenity space and a riverside walk.

Confidence flows in Chelmsford

Chelmsford’s local authority believes the town has overcome the ravages of the economic slowdown and is attracting both developers and occupiers. It argues that there are still opportunities for further development. The council cites Churchmanor’s Chelmsford Business Park, located to the north east of the town, with its 25 acres of low density, high class commercial accommodation within an overall 40 acre site and which still has plots available for new build development.

There are a variety of leases and even freehold sales on the park. For example, Visteon Engineering Services moved into a speculatively built 2,787 sq.metres (30,000 sq.ft.) building on an occupational lease. Local Housing Association, CHP, also moved to the park recently, to join existing high profile occupiers including International Financial Data Solutions, Clifford Thames and ebm Papst. At Springfield Business Park, also to the north east of the town, the concentration is on industrial and distribution space with occupiers including City Link, Parcelforce Worldwide and Aldi.

Further new build opportunities exist, providing potential occupiers with the ability to specify a building to their exact requirements. Local agent, Robert Dewar Commercial, has recently secured a new lease on a 4,924 sq.metres (53,000 sq.ft.) former Boots warehouse on the nearby Dukes Park Industrial Estate from Kent Foods, an Ireland based food ingredients supplier. As far as the council is concerned, the presence of BAE Systems’ Integrated Systems Technologies Centre, a significant global technology player, together with many of the other former GEC Marconi businesses, makes Chelmsford one of the foremost advanced manufacturing and electronic engineering centres in the UK.

Recognizing this key strength, the town will soon commence development of a new innovation centre with the specific objective of encouraging and facilitating global innovation in advanced technologies both by the major players and smaller, niche operators. Paul Bullock of Lambert Smith Hampton commented: “It is a patchy market with a shortage of Grade A offices but a proliferation of second hand space. But there are development opportunities which have been held back by the difficulty of raising finance.” He anticipates a better second half year in 2011, adding that “Essex has withstood the
recession well.”

New shops in Luton and Basildon

One sign that the pressure of the recession is easing is that two major towns are likely to get major new shopping facilities. Basildon Council is pushing ahead with the big mixed use scheme in the town centre now that the Barratt/Bowden Wilson joint venture has been appointed to carry it out. This will have 51,979 sq.metres (559,520 sq.ft.) of retailing and leisure and slightly more than that for offices. There will also be 1,900 residential units together with enhanced civic facilities and infrastructure improvements.

A spokesman for the developers said: “Basildon is a good place to invest, with great potential for growth.” In Luton, British Land is expected to take over the stalled £200 million PowerCourt retail development from Ballymore, which owns around 40% of the site, the rest being with the council and the Environment Agency. The plan is expected to have 46,450 sq.metres (500,000 sq.ft.) of retailing and 200 homes.

Under starter's orders

As the impending Olympics weaves its magic spell over East London, the rest of the region is experiencing a tough, but improving, market. There are even some bright spots on regeneration and development with Basildon going for its large town centre scheme. Colchester has also seen increased activity.

On the basis of recent figures for Essex and adjacent areas, demand has improved with offices at 213,670 sq.metres (2.3 million sq.ft.) and industrial at 483,080 sq metres (5.2 million sq.ft.). As with the rest of the UK, there is a growing shortage of prime new space so companies will have to increasingly look to second hand accommodation. That would normally bring an increase in rentals over time but it provides a healthy backdrop for any new schemes in the next 18-24 months. Which is where the institutions and banks come in because developers need the funding to start building gain.

The influence of the Olympics is all pervading and includes south of the river where Development Securities has joined Cathedral Group in a £100 million mixed use scheme called The Movement, Greenwich, centred on Greenwich Light Railway Station. Central to the scheme is a 103 bedroom hotel to be completed in time for the Olympics. The rest of the scheme, which has 180 residential units, 372 student flats, educational space, offices and leisure facilities, will be completed in 2013. Cathedral’s Richard Upton said: “We aim to create a new community in the heart of West Greenwich. In 2012 Greenwich will be in the international spotlight as a host borough for the Olympics.”

The Olympics are also the driver for a joint venture of Cycas Hotel Partners and Patron Capital in buying the long leasehold rights for two hotels at Westfield Stratford City. As in Greenwich, they will be completed by 2012 and will be a 188 bed Holiday Inn London-Stratford City and a 162 bed Staybridge Suites.