On a cold November morning, we made our way to North Greenwich, where we met our colleagues from Brunel and Orchard Street (£10m commitment) - a fund that we're invested in via Brunel's UK Property portfolio, which invests primarily in UK commercial property.
We visited two industrial units: Lombard Trading Estate, Charlton, and Euroway Trade Park, Aylesbury.
Lombard Trading Estate, Charlton
Situated within the Charlton Riverside development, this is an area undergoing significant transformation with plans for new homes, education institutions and open landscapes. Charlton's increasing residential density and limited industrial capacity make it a prime location to develop and leverage the rent opportunity.
During our visit, we saw a vacant unit which will be refurbished in March 2025, so while it took a little imagination to see the how this tired warehouse will be transformed, we were keen to understand how this will be achieved.
As the 8 units become vacant they will undergo a comprehensive refurbishment to decarbonise and upgrade, including new roofing and the removal of asbestos, installation of LED lighting and a refitting of the front façade, enhancing energy efficiency and practical interventions like electrifying lighting. These sites will also be fitted with metering equipment to monitor energy use and identify inefficiencies, such as lights left on overnight.
The redevelopment follows the CRREM decarbonisation pathway to ensure the operational practices align with Paris Agreement targets. For instance, as part of the renovated roofs, solar panels will be installed which will power the on-site EV charging stations for business use. There will also be public charging points which will be powered through renewable grid energy.
The first refurbished unit is set to be leased by next summer, with an anticipated return of 11-14%.
Lombard Trading Estate aerial diagram
Lombard Trading Estate Business Plan Impact Initiatives Showing Building Features and Carbon Reduction Measures
Plans and pictures from the two sites
Aylesford
After a short drive, we arrived at the second site located at Euroway Trade Park where we saw a recently refurbished unit.
Enhancements to the unit include the installation of insulated offices, heat pumps, solar panels, double-glazed windows, and LED lighting. As a result, the energy performance certification (EPC) rating improved from D to A+. These units were also fitted with showers and a kitchen - unusual, but important additions to these industrial units, improving tenant/employee wellbeing.
Biodiversity was considered in the design, with greenery replacing traditional bin roofs and structures added to trees to create habitats for insects.
The project involved 50 workers over 16 weeks, showcasing the scale and effort required for such transformations. We were pleased to learn that five apprentices participated in the redevelopment with the site contractor, HBS, gaining hands-on experience.
This site demonstrates how these projects significantly contribute to the local social value. Using the SCOPE framework, it's estimated that this development delivered £20,000 in additional social value through encouraging local employment, apprenticeships, excess material donations to a local hospice and air quality improvements.
The project achieved a SCOPE compliance rating of 48%, nearly double the industry benchmark of 25% - demonstrating that, when redevelopment is done right, we can contribute to the local community without sacrificing returns.
Conclusion
The redevelopments at Charlton and Aylesbury demonstrate how transforming industrial units can be revitalised to align with net-zero goals, enhance community social value, alongside delivering secure long- term financial returns.
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