By George Gay, fund manager – direct property and Hanna Corney, asset manager
Though TR Property Investment Trust is best known as an investor in listed property companies, the real estate that we own directly also makes up a crucial part of our strategy. Up to 15 per cent of the portfolio’s value can be allocated to direct holdings, allowing us to “practice what we preach”. Just as we expect our investee companies to commit to environmental targets wholeheartedly through improvements via refurbishment and development, we strive to do the same with our own direct property holdings.
It is this vein that we are pleased to unveil the first of our newly refurbished units at Ferrier Street Industrial Estate, marking the completion of the first phase of our refurbishment plan. This project is a key component of the Trust’s long-term strategy of reaching net-zero carbon by 2040 within its physical asset portfolio, and helps to meet the demand for high-quality, ESG-compliant industrial workspace in London.
Acquired by the Trust in 2002, Ferrier Street Industrial Estate spans 35,000 square feet of ground-floor space across 16 industrial units, along with additional units at 1 Ferrier Street and a retail unit at the junction of Ferrier Street and Old York Road. While the estate has remained popular due to its prime location, the units are ripe for refurbishment to bring them in line with today’s business and environmental standards.
Taking a phased approach to the refurbishment means we are able to modernise the estate without causing significant disruption. The plan will create ultra-urban industrial workplaces, with units ranging from 2,300 to 4,000 square feet, designed to cater to a wide variety of businesses across multiple sectors. Light industrial is a sector that has long been favoured in our equity investments and these new units will combine functionality with sustainability, offering modern spaces that can be adapted to meet the needs of industries from logistics and manufacturing to creative offices and e-commerce.
Key features of the refurbishment include:
- A new roof fitted with photovoltaic (PV) cells to generate renewable energy
- Comprehensive redecoration, both inside and out, to enhance the appearance of the estate
- Upgraded mechanical and electrical systems, including air conditioning for offices and energy-efficient LED lighting
- Improved landscaping to provide a more attractive environment
- Enhanced insulation to boost energy efficiency
- Achieving an EPC A* rating for energy performance
- A net-zero carbon assessment in progress, ensuring alignment with our 2040 sustainability targets
- Flexible lease terms, offering both short and long-term options to accommodate a range of business needs
The community and social impact of our direct property extends far beyond the physical boundaries of our ownership, so our approach to social responsibility and the impact of our assets on their surrounding communities is always carefully considered. We have supported the Wandsworth Foodbank for three years at Ferrier Street and were pleased to extend their occupation on the estate by relocating them to another unit when the refurbishment works commenced. From this unit they have continued to provide over 11,000 emergency food supplies to local people and families.
The refurbishment of Ferrier Street is designed to meet the growing demand for high-quality, small-scale industrial workspace in close proximity to Central London, offering a rare combination of ESG-focused, sustainable features in such a dynamic location. The specific offering of Ferrier Street units match the demands of modern retailers – space to benefit online shoppers, the proportion of which has ballooned since the pandemic, while in close enough proximity to service physical stores around the city.
With the first phase now complete, we are looking ahead to the next stages of this exciting project. Phase 2, consisting of 3 units, is scheduled for completion by Christmas, and by the end of the final phase, Ferrier Street Industrial Estate will offer some of the best ultra-urban industrial units in the area, meeting the diverse needs of modern businesses while supporting our commitment to sustainability and carbon neutrality within our physical property portfolio by 2040. People live, work and play in the properties which we or our investee companies manage and own, so it is our responsibility to add value and engage with society in all that we do.
Get in touch if you’d like to find out more about the upcoming units or have any questions.
Approved 14/10/2024 by Columbia Threadneedle Management Limited
