Capital Industrial has bought a 42,722 sq ft industrial estate in Park Royal, West London, for a sub-3% initial yield.
Investment manager Eskmuir Properties sold 5-9 School Road, which comprises three industrial facilities, for more than £15m.
The asset is currently let until 2023 to HR Owen, a luxury vehicle dealership and aftercare business for brands including Maserati, Lamborghini, Bugatti and Rolls Royce.
The properties were marketed and the deal exchanged throughout the Covid-19 lockdown period.
Paul Hodgson, managing director of Eskmuir, said: “This landmark deal, launched and completed during lockdown, demonstrates a renewed confidence in the market.
“As part of our stated portfolio strategy, this sale will allow us to redeploy capital and grow our diversified portfolio, focusing on opportunities where we can increase value significantly through our stewardship and proactive asset management approach.”
Matt Horgan, managing partner of Capital Industrial, said: “The estate is located in a prime central location undergoing substantial urban regeneration, and we believe it will offer us many opportunities for growth in the future.”
ACRE acted on behalf of Capital Industrial while Eskmuir Properties was represented by Lewis Ellis.
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
