Leading real estate developer, Graftongate and UK and European real estate investment management firm, Oxenwood Real Estate have teamed up to develop a last-mile logistics facility in Barking.

The development will be on a 2.2-acre site on the A13, accessed via Gascoigne Road, which has been acquired from TJM (Essex) Limited by Oxenwood Logistics Fund 1 SLP, a discretionary fund managed by Oxenwood Real Estate, for GBP14.25 million.

Following the purchase, Graftongate and Oxenwood will enter into a development management agreement to obtain planning consent and construct a 59,263 sq ft unit, which is expected to be completed in the second quarter of 2023.

This is the second joint venture between Graftongate and Oxenwood, following the acquisition earlier this month of Hayes Bridge Retail Park in west London for £50 million.

Phil Silk, managing director of Graftongate, said: “We are delighted to have Oxenwood as a partner for the second time. We look forward to delivering an outstanding development together.”

Jeremy Bishop, co-founder of Oxenwood, said: “This transaction provides the fund with an opportunity to deploy its capital into a best-in-class logistics asset, providing occupiers with a high-quality building in a proven London urban logistics location.”

Graftongate and Oxenwood were advised by DTRE, Gowling WLG and Wedlake Bell; TJM (Essex) Limited was advised by JLL and Laderman & Co.