Primark’s owner buys £135m Bermondsey Reach scheme
Primark owner Wittington Investments has bought the Bermondsey Reach development site from Centerbridge and Argon Capital.
The site, at 79-161 Ilderton Road, SE16, was being marketed by CBRE and Kalmars, with offers invited on an unconditional basis.
The 1.3-acre site, which was previously used as a lorry park, has consent for a 28-storey, 312-flat scheme, alongside 20,000 sq ft of shops and offices, with a GDV of £135m. However, Southwark Council has responded positively to pre-application engagement for a rationalised scheme of 21 storeys and 314 homes.
Primark owner Wittington Investments has bought the Bermondsey Reach development site from Centerbridge and Argon Capital.
The site, at 79-161 Ilderton Road, SE16, was being marketed by CBRE and Kalmars, with offers invited on an unconditional basis.
The 1.3-acre site, which was previously used as a lorry park, has consent for a 28-storey, 312-flat scheme, alongside 20,000 sq ft of shops and offices, with a GDV of £135m. However, Southwark Council has responded positively to pre-application engagement for a rationalised scheme of 21 storeys and 314 homes.
The deal is the second partnership between Wittington Investments and co-living operator Fifth State. In 2020 they teamed up for a 27-storey residential tower redevelopment of Citylink House, a 48,000 sq ft office block opposite East Croydon station. The plans were rejected by the council in January.
Wittington is 79% owned by the Garfield Weston Foundation and owns Associated British Foods. ABF in turn is the parent company of Primark.
Bermondsey Reach was marketed as a strong investment opportunity for the build-to-rent market, given the size of the scheme and high proportion of studios and one- and two-bedroom flats.
The scheme is adjacent to South Bermondsey station and is less than half a mile from the proposed New Bermondsey Overground station, which is due to complete in 2025.
CBRE residential development director Jonathan Allen said: “This is a rare opportunity to bring forward a large mixed-use scheme within the Old Kent Road Area Action Plan and adjacent to the £2bn New Bermondsey regeneration.
“CBRE’s research shows that residential property values that form part of key London regeneration areas increase by an average of 4.7% per annum, demonstrating that Bermondsey Reach is an attractive, long-term investment.”
Sebastian Kalmar, director and development consultant at Kalmars, added: “Bermondsey Reach has the potential to be one of the most iconic developments in the area. It has exceptional transport links and is in the heart of New Bermondsey Quarter – one of the most exciting regen areas in south east London.”
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