As the UK’s economic, political and cultural powerhouse, London presents a compelling proposition to real estate developers.  However, with an increasing paucity of well-located available land, there is intense competition between housing, infrastructure, public realm and commerce for the limited space available. 

 

Industrial and logistics use can be perceived as a lower priority than the other land uses, but it is critical to London’s economy and to keep the capital moving.

 

In our experience, working in partnership with local authorities is the most effective approach to marrying public demand with private development and investment, bringing mutual economic, employment and social benefits to all parties. 

 

SEGRO’s East Plus partnership with the Greater London Authority (GLA) shows what can be achieved in delivering sustainable development, training and jobs on under-utilised industrial land. We are now halfway through our 15-year programme to deliver 1.4 million sq ft of modern, sustainable industrial space across 86 acres of brownfield land in Newham, Barking & Dagenham and Havering.  

 

The partners commissioned Gerald Eve to produce a review of the programme, what has been accomplished to date, the obstacles that have been overcome and what is planned for the next phases.

 

It highlighted the importance of scale as an enabler for delivery, both in terms of the volume of funding and resourcing committed to projects. It also highlighted the importance of an ambition to create space beyond the buildings themselves and investing in the surrounding environment, amenities and infrastructure.

 

In keeping with the growing prevalence of ESG in investment and development, the value of committing resources to the local community from the outset was recognised. SEGRO has established a Community Investment Plan in its key markets, including East London, where key partners are identified to receive funding and support to help deliver measurable programmes that make a tangible difference to local people’s lives.  

 

When considering what lessons can be learned, the review made clear that the successes of the East Plus project could have been further enhanced by more investment in public services (including planning, training and employment) and the wider infrastructure network in East London. Both the GLA and SEGRO have identified clear benefits of progressing a partnership, as opposed to bringing forward sites as individual plot disposals.  At the mid-point of the programme and based on the outcomes already attained, we are proud to say that the project can already be deemed a success, and there are opportunities to achieve even more with the remainder. 

 

Finally, a successful partnership requires committed resources and active participation from both parties.  A shared vision, energy and a robust financial position are all key and have underpinned the foundations of the East Plus partnership, which we think offers a blueprint for public-private sector collaboration.