Schroders Capital’s real estate division has completed the sale of two prime urban logistics estates in Watford and Park Royal to Prologis UK for £200m.
Combined, the two estates comprise more than 362,000 sq ft of last-mile logistics facilities across 17 acres. The space is fully leased to occupiers in sectors including distribution, construction, pharmaceuticals, and film and television.
Central Park is a 162,000 sq ft urban logistics park located on Central Way in Park Royal, NW10. It consists of 10 warehouses and has a WAULT of 5.6 years to break, with 6.9 years to lease expiries. The estate was developed on a 6.5-acre site in 2013 to a BREEAM Excellent specification.
Imperial Park is located on Imperial Way in Watford and provides 200,000 sq ft of industrial and trade counter accommodation across 15 facilities, developed in two phases between 2000 and 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. Occupiers include Selco, Screwfix, Vodafone and Sigma Pharmaceuticals, on a WAULT of 5.7 years.
Philip Scott, portfolio manager at 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 at Gerald Eve, which advised Schroders on the deal, 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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