Property consultancy Vail Williams has successfully negotiated the sale of nearly one-and-a-half acres of industrial outdoor storage (IOS) land in a prime Croydon area.

The firm acted for a private individual in the sale of 89–91 Beddington Lane to Marchmont Investment Management for an undisclosed sum. Extending to 1.495 acres (65,122 sq ft) with office space of 2,822 sq ft (262.1 sq m), the site is let to Sunbelt Rentals UK on a 10-year lease from April 2018.

Mikael Goldsmith, Vail Williams partner, concluded the deal for the site – a rare open storage investment opportunity in an established key industrial location. Patrick Windle of M1 Agency acted for the purchaser.

Mikael said:

“This well-located freehold site generated strong interest, reflecting the ongoing demand for IOS assets in strategic South London locations. Great to see this one over the line – congratulations to all parties involved."

“The wider popularity of IOS is a growing trend. Historically it has very much been dominated by owner-occupiers and private investors, but we are now seeing more institutional investors moving into the sector, perhaps attracted by growing demand for sites and minimal maintenance overheads."

“Traditionally the preserve of the construction industry, IOS site have been increasingly used by other sectors, particularly for vehicle storage connected with supply chain distribution networks. The Covid-19 pandemic accelerated the last mile delivery concept, driving demand for IOS sites in prime locations, with further growth likely. Now is a good time to come to market for anyone holding suitable land.”

The Croydon site is conveniently located for transportation links via the A326 and B272, with central London a 30-minute drive, Gatwick Airport 28 minutes and Heathrow 45 minutes. Beddington Lane tram stop is three minutes’ walk away and Hackbridge train station is eight minutes.

Nearby occupiers include IKEA, TNT, Booker, UPS Royal Mail, Selco, DHL and GXO. The property comprises a concrete surfaced open storage yard, with a small three storey office building. The site benefits from power, electric, drainage, water and a secure perimeter fence. It has primarily operated as open storage for the past 20 years with the previous use being a scaffolders yard.

Croydon, 9.5 miles south of central London is greater London’s largest single market, with inward investment of over £5.25bn on local regeneration projects, including the Growth Zone Program, a £520m initiative supporting local infrastructure upgrades, including the 1.4bn redevelopment of the Whitgift Shopping Centre and the improvements to West Croydon Station and local tram services.

Vail Williams’ full-service property advice includes commercial agency, investment and development advice, building consultancy, property valuation, planning, lease advisory, property asset management, business rates and occupier consultancy.