Barwood Developments and British Airways Pension Fund have joined forces to develop a 1.15m sq ft industrial scheme in Oxfordshire, in what will be one of the biggest shed developments since the downturn.

The pair have bought the 60 acre Central 40 site, adjacent to the M40 in Banbury, from Kennet for about £24m. Barwood will not develop the scheme speculatively and is already
in advanced talks with potential occupiers to prelet the space.

The joint venture will submit an outline planning application for the site in December with the intention of starting construction early next year. Completion of the scheme is targeted for autumn 2012.

Aerospace and defence systems developer Goodrich’s subsidiary CTG last week signed a prelet for 100,000 sq ft of industrial space and 20,000sq ft of offices on a neighbouring former Thames Water site owned by Albion Land.

CB Richard Ellis advised Barwood and the BA Pension Fund; White Commercial and Jones Lang LaSalle advised Kennet and Albion Land.