Prologis UK, the global logistics property company, has bought Prologis Park Western Avenue, formerly a part of the Western Avenue Business Park, in west London from DTZ Investors for around £125 million.
Prologis said the acquisition reinforces its commitment to London and the South East, taking its assets under management in the UK to $9.6 billion (£7.4 billion), of $199 billion assets managed globally by the REIT.
The park comprises 288,523 square feet across a contiguous site of 16.14 acres and is leased to 21 customers. The acquisition increases Prologis’ presence at Park Royal, and features a mix of urban logistics and retail warehousing. The price paid has not been disclosed but is understood to be circa £125 million.
The mixed-use logistics, industrial and retail park has direct access to the A40 dual carriageway, providing quick access to London’s inner orbital road, motorway network and the centre of the capital. Five underground stations are accessible within 15 minutes’ walking distance.
Paul Weston, regional head of Prologis UK, said in a statement: “This acquisition is a significant milestone for Prologis. It reinforces our strategic investment commitments to the UK industrial and logistics market here in London, supporting the growth of our national economy.
“Park Royal is the most successful logistics location in the capital. Through confident and swift work with everyone involved, we’ve secured a new park which will complement our existing portfolio, ensuring that we stay at the forefront of the UK's logistics sector."
Kevin O’Connor, senior director at DTZ Investors, said: “The asset was sold to fulfil the long term strategy of the Fund managed by DTZ Investors. This transaction reflects the continuing strength of demand for prime inner London Industrial estates required to serve the capital. The fund acquired the West Five retail park in 2016, adding it to the existing Western Avenue Business Park holding and enhancing the overall attractiveness of the asset to potential investors.”
Prologis said the site offers potential for future redevelopment which could expand and increase density at the site, including data centres and logistics fulfilment centres.
Following the acquisition, two vacant units of 3,862 square feet and 8,030 square feet are immediately available.
Prologis was represented by DTRE, DTZ Investors was represented by ACRE Capital Real Estate.