Schroders Capital's real estate team sells prime Greater London urban logistics estates for £200 million

Schroders Capital’s real estate team has completed the sale of two prime urban logistics estates to Prologis UK for £200 million.

The two estates, based in Park Royal and Watford, comprise over 362,000 sq ft of last-mile logistics accommodation, spanning a total of 17 acres and are 100% leased to occupiers operating in diverse industry sectors including distribution, construction and pharmaceutical, as well as film and television.

Central Park is located on Central Way, in Park Royal and is an urban logistics park, providing 162,000 sq ft of accommodation across 10 highly specified warehouse units within an independent and well-maintained business park environment. The estate was developed on a 6.5 acre site in 2013 to a BREEAM ‘Excellent’ specification.  It provides a diverse income profile with an AWULT of 5.6 years to break and 6.9 years to lease expiries.

Imperial Park is located on Imperial Way in Watford and provides 200,000 sq ft of high quality industrial and trade counter accommodation across 15 units, developed in two phases between 2000-2009.  It is let to 12 tenants, with 86% of the income secured against covenants rated ‘Minimum Risk’ or ‘Lower than Average Risk’ by Dun & Bradstreet, with occupiers including Selco, Screwfix, Vodafone and Sigma Pharmaceuticals and benefits from an AWULT of 5.7 years.

Schroders Capital Real Estate was advised by Gerald Eve.

Philip Scott, Portfolio Manager, Schroders Capital, said:

“The disposal crystallises strong performance for our client following asset management activity at Central Park where a new tone of rent has recently been achieved. The disposal demonstrates our ability to position assets to meet continued strong demand for prime industrial assets against a backdrop of a more uncertain investment market.”

John Rodgers, Head of the UK Capital Markets and Corporate Finance teams, Gerald Eve, said:

“The market dynamics have changed substantially over the last few months, driven initially from the increased cost of debt. However, the fundamentals driving performance for the industrial sector remain strong with high levels of liquidity for the very best in class assets in the sector.”

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