Warehouse space developer SEGRO has completed a £120 million acquisition of 419 hectares of land in Colne Valley, Hertfordshire.
The £120 million that was spent on the three sections of land that make up the entire site (of which 50% is deferred for 12 months), were bought from Hertfordshire County Council, Tarmac, and Gorhambury Estates Company.
SEGRO received planning permission from the Secretary of State for the development, which is recognised by the Government as ‘nationally significant’ infrastructure which will deliver ‘major’ benefits on a national, regional, and local scale.
It will also form a key part of the UK’s modal shift from road to rail and help meet the country’s net-zero ambitions sooner.
Under SEGRO’s ownership the site will be developed into a rail freight interchange supported by up to 3.6 million ft² of modern and ‘sustainable’ logistics warehousing, which will include B1 (office, light industrial, research, and development) and B2 (general industrial) warehouses.
Works are expected to start on site in summer 2023 with the initial focus of this multi-year investment programme focussed on creating the rail connection and preparing the site for development. It is anticipated that the completed scheme will deliver around 4,000 jobs, with a further c. 500 jobs generated on site during construction.
The purchase is subject to additional overage charges which would be payable to the vendors in the event that additional value is achieved through planning consent for alternative uses and subsequent development or sale, or should the infrastructure works cost less than assessed at the time of the acquisition.