Caleb Close Industrial Estate, Luton

Caleb Close comprised a 14 unit 1960’s industrial estate on a 6.29 acre (2.55 ha) site. The property was a long held Co-op property investment but included a redundant office building, Wingate House, which was uneconomic to refurbish and a terrace of industrial units which were management intensive and reaching the end of their economic life.

The site was largely surrounded by urban residential property and had been allocated for residential development within the Luton Local Plan. A residential scheme comprising 156 units was approved but included a planning condition requiring 50% affordable housing which adversely impacted both viability and value. By now, the banking crisis intervened and the residential land market collapsed. To mitigate vacant holding costs the buildings were demolished and the site cleared given that the principle of residential development had now been established.

As the economy recovered, Luton Borough Council recognised that boosting housing delivery was a priority. Following discussions with LBC, a fresh planning application was submitted and subsequently approved for 181 residential units. This time, only 20% of the scheme was to be allocated for affordable housing. With the benefit of the revised consent the site was then openly marketed and sold unconditionally for £6.4m together with an overage provision to share any future uplift in value should the developer seek planning consent for a higher density scheme.