September 2021 - Costar
Gemco Properties Sale of Former Nurseries Distribution Site Underlines Changing Dynamics of Market.
Gemco Properties has sold the 3.09-acre Bellbourne Nurseries site between Egham and Virginia Water in Surrey to H&G Car Parks in another clear example of industrial land values topping residential.
The site was originally a plant nursery and flower distribution site but in recent years has been used for general storage and vehicle maintenance. Gemco Properties had secured a range of planning consents through permitted development rights and other applications for a 25,000-square-foot residential scheme, but it has been bought for open and covered storage use for an undisclosed price.
Rob Marson, director at Campbell Gordon, which advised Gemco Properties, said it was yet another example of how industrial and storage land value is out performing residential development values.
“It is an ever-growing phenomenon, and value differential in some locations is now very significant. We are finding more and more landowners are moving away from residential development strategies, with onerous and expensive affordable housing obligations, and instead pursuing distribution and industrial strategies.”
Roger Williams, principal at Gemco Properties, said it had looked at a wide range of uses and development angles and “it is really interesting that despite the ‘oven ready’ planning consents the highest bidders who would buy on an unconditional basis were industrial and storage operators”.
Campbell Gordon advised Gemco Properties on a sole agency basis. H&G Car Parks was unrepresented.