An urban warehouse estate in London has been sold to investor developer SEGRO for more than £200 million.
SEGRO paid £202.5 million for the 34-acre Perivale Park estate, in West London, from Federated Homes.
The estate provides 593,091 sq ft of lettable space across 23 units and has 8 acres of land which is currently leased as a vehicle compound but has medium term development potential.
The estate is located in SEGRO’s core west London cluster alongside the A40 main road into Central London and within 2 miles of London’s inner arterial road, the North Circular Road, making it perfectly located for distribution into London.
The fully let park has a passing rent of £6.8 million, reflecting a low average in-place rent of approximately £10 per sq ft with an ERV of £12.50 per square foot (excluding the rent for the land). This compares to current market rents in the region of £15 to £20 per square foot in SEGRO’s £1.5 billion portfolio of estates in Park Royal and Greenford.
Alan Holland, business unit director for SEGRO’s Greater London portfolio, said: “Perivale Park offers a rare opportunity to build further scale and drive value in an area where we already have considerable expertise and knowledge of the local market and customer base. It also offers medium-term development and redevelopment potential in one of London’s prime, and most supply-constrained, industrial clusters.”
SEGRO was advised by Altus Property Services. ACRE Capital Real Estate acted on behalf of Federated Hermes.