British Land is close to acquiring its first logistics property, with a Waitrose customer fulfilment centre under offer for around £90m.
The deal to buy Heritage House in Enfield from M&G’s property portfolio fund would represent a net initial yield of around 3%.
M&G had previously bought the warehouse from Standard Life in 2012, for £22.1m. At the time it reflected a net initial yield of almost 7%.
Heritage House is located at 345 Southbury Road. Waitrose occupies around 110,500 sq ft of the site as a delivery depot, according to Radius Data Exchange, with its lease due to expire in 2025.
The 11-acre site is also leased to Crown Records Management.
The acquisition would signal the first major push into the sector from the REIT. Under chief executive Simon Carter’s leadership, British Land has been ramping up plans to diversify into alternative uses.
Knight Frank is advising British Land, while Acre Capital is acting on behalf of M&G.
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