The three sections of land that make up the site have been acquired for £120 million (of which 50% is deferred for 12 months) from Hertfordshire County Council, Tarmac Plc and Gorhambury Estates Company Ltd.
As a result of the deal, the site will be developed into a strategic rail freight interchange supported by up to 3.6 million square feet of modern, sustainable logistics warehousing, including ancillary B1 (office, light industrial, research and development) and B2 (general industrial) warehouses.
SEGRO has received planning permission from the Secretary of State for the development, which is recognised by the Government as nationally significant infrastructure that will deliver major benefits on a national, regional and local scale. It will also form a key part of the UK’s modal shift from road to rail and help meet the country’s net-zero ambitions.
Works are expected to start on site this summer, with the initial focus being the creation of the rail connection and preparation of the site for development. It is anticipated that the completed scheme will deliver around 4,000 jobs, with an additional 500 or so vacancies also generated on site during construction.
David Sleath, Chief Executive Officer, SEGRO, said:
“The former Radlett Aerodrome site offers a rare opportunity to bring together the economic and environmental benefits of rail freight, provides connectivity to key arteries of the highways network and access to a large pool of employees. The scheme will also benefit the national and local economies, as well as help satisfy the demands of consumers and businesses for the sustainable movement of the goods and services we increasingly rely on in our daily lives.
“As a long-term investor and specialist in the provision of logistics infrastructure developments, we are proud of the benefits we’ve already delivered across the country including at our East Midlands, Coventry and Derby projects. The strategic partnership we recently agreed with the West Midlands Combined Authority will see us deliver 14,000 jobs and 13.5 million square feet of employment space on brownfield sites in the region over the next decade and is another example of how we prioritise working in close collaboration with local authorities and communities to maximise the benefits and opportunities our developments and operations can bring to an area. We look forward to employing this approach and our experience at Radlett.”
“The blueprint for the scheme will follow the successful delivery of a major strategic rail freight terminal and logistics development at SEGRO Logistics Park East Midlands Gateway, near Derby, where we have seen exceptional demand, and which expect to complete significantly ahead of schedule while providing employment for over 5,000 people.”
SEGRO adds that the purchase is subject to additional overage charges which would be payable to the vendors in the event that additional value is achieved through planning consent for alternative uses and subsequent development or sale, or should the infrastructure works cost less than assessed at the time of the acquisition.