Brixton Estate has bought ProLogis Park at Green Lane, Hounslow, for £100m as it continues to target Heathrow in its push for prime distribution space.
The purchase includes four warehouses, which range from 10,591 sq m (114,000 sq ft) to 15,328 sq m (165,000 sq ft) and which provide up to 20% office space. Tenants include British Airways and Guardian iT. With rents at over £118 per sq m (£11 per sq ft), Brixton expects net initial returns of more than 6.1%.
The purchase follows the company’s £103.25m exchange on the Slough-based Axis Park, which it bought from MEPC two weeks ago. Rental growth in the area is estimated to be 4% over five years.
In the last 18 months, Brixton has bought sites at Axis and ProLogis Park, as well as Greenford Park and Premier Park in a joint venture with Henderson, amounting to 222,960 sq m (2.4m sq ft).
Tim Wheeler, Brixtons chief executive, said: “Rental growth potential at Heathrow is very good. There is continued pressure on land supply and tenant demand is strong from airport users and new economy businesses.”
Insignia Richard Ellis acted for Brixton while Holley Blake acted for ProLogis.
EGi News 20/09/00
