Forth Ports, advised by Pinsent Masons, has signed a joint venture agreement with Roxhill Developments to develop up to 940,000 ft² (approx. 87,000 m²) of industrial space at the Port of Tilbury in Essex.
Under the terms of the deal, Roxhill Developments has purchased a 50% stake in the London Distribution Park, a 70 acre development site adjacent to the port. Planning permission for the scheme has already been granted, with construction work on site infrastructure expected to start shortly.
The joint venture represents the next phase in Forth Port's expansion of the Port of Tilbury, following the £120 million (approx. 140 million) upgrade of the London Container Terminal in 2012.
Tom Johnson, real estate partner at Pinsent Masons who led the team advising Forth Ports, said: "Following the completion of the London Container Terminal upgrade, there is a latent and growing demand for industrial space at the Port of Tilbury, and this joint venture goes a long way towards realizing this opportunity.
"The complementary interests and expertise of Forth Ports and Roxhill Developments create a formidable partnership working towards the creation of the London Distribution Park and, with planning permission already in place, the JV is ready to react to occupier demand and develop what will become the region's leading logistics site.
"The prospects for industrial property in 2013 and beyond are excellent, with London Distribution Park uniquely well-placed to capitalize on the opportunities that are sure to arise in the sector."