Barratt London has completed the unconditional purchase of brownfield land at 227-255 Ilderton Road, reports Savills.

Savills assisted Leatham in selling the property for £15m to the leading London housebuilder.

The site, off the Old Kent Road, spans 0.96 acres/0.39ha and includes a former Leathams warehouse complex with planning permission for a 28-storey residential tower on top of a 30,000 sq ft industrial unit.

The site has planning approval for 253 new apartments, with 35% of them being affordable. The homes are located above a warehouse unit suited for B1c, E, and B8 use classes and has the potential for distribution space, which is still in high demand among industrial and logistics occupiers.

This is one of the first times a thoroughly considered co-location / beds and sheds consent has been acquired by a national housebuilder. This could now pave the way for more safeguarded industrial sites to be delivered for housing, freeing up brownfield employment sites whilst providing both much-needed homes and jobs.

Andrew Cox, Savills development director, commented: “The Leatham’s site provides the opportunity to develop a truly mixed-use scheme bringing together both residential and distribution, two of the UK’s current best performing asset classes”

Bridget Outtrim, Savills director in the industrial & logistics teams, added: “The ongoing demand for online retail, coupled with significant supply constraints for appropriate warehouse units within London is likely to attract interest from high quality commercial occupiers, who, thanks to the scheme’s revolutionary design, will be able to coincide seamlessly with their residential neighbours.”

Richard Mills, Land Director from Barratt London, said: “We are very pleased to have agreed the purchase of this brownfield site in a popular and well-connected regeneration hotspot in South London. The site has planning consent for 253 dwellings and represents a fantastic opportunity for Barratt London to deliver high quality new homes and employment roles, whilst ensuring that we are taking a sustainable approach to creating a new community in the Capital. We look forward to commencing works onsite in December 2021."