An industrial site in Bermondsey which is set to be redeveloped into a striking new residential scheme has been sold for £9.75million by leading South London estate agent KALMARs and joint agent Kingsbury.
Purchased by established housebuilder Optivo in a joint venture project with housing association Skillcrown, the Hatcham Road site is located on Hatcham Road and Ilderton Road, part of the Old Kent Road Opportunity Area, and has resolution to grant planning permission for a nine-storey building providing new homes and commercial units.
Sold on behalf of developer Aitch Group, the proposed Hatcham Road scheme provides for 86 homes as a mixture of one-bedroom, two-bedroom and three-bedroom apartments, with two large commercial units on the ground floor. Designed by architectural practice Alan Camp Architects, the scheme will provide 61,000 sq. ft. of residential space and 7,600 sq. ft. of commercial space in total, and the site received resolution to grant planning permission in November 2018. The purchaser was introduced by Kingsbury, with KALMARs’ extensive local knowledge and experience guiding the deal.
The purchased Hatcham Road site totals 0.45 acres across 3 parcels of land; a single storey building which contains three commercial units at 62 Hatcham Road; yard space at 60A Hatcham Road; and a two-storey industrial building with yard space at 134-149 Ilderton Road.
Hatcham Road is located just 0.4 miles from Old Kent Road which is undergoing extensive development into a new ‘city’ which will provide 20,000 new homes and workspace for 10,000 new jobs, replacing low-rise retail warehouses and factories. The Old Kent Road Opportunity Area and new Action Plan is a 20 year investment strategy to strengthen the area’s appeal, build stronger communities and provide substantial highly-sought-after homes and workspace. KALMARs recently highlighted in a focused research report that the Old Kent Road regeneration plans have a GDV of £10.7 billion, with the Bakerloo Line Extension and location’s growth potential proving hugely attractive to investors and developers.
The Hatcham Road site could prove a very substantial investment as land values along Old Kent Road and throughout the surrounding area are rising; the site at Hatcham Road sold for circa £159 per sq. ft. when based on the potential consented residential space of 61,000 sq. ft., as KALMARs report that new-build private home schemes along Old Kent Road are achieving between £700 up to £800 per sq. ft. once completed.