M&G Real Estate has bought One Park Royal in west London for £22.6m – a 5.25% net initial yield.
It bought the 106,910 sq ft shed from Standard Life Investments.
The property is let to Enotria Wine Cellars until May 2029 on a full repairing and insuring lease.
Adam Coulston, director investment management at M&G Real Estate, said: “Investor demand for UK distribution warehousing has remained robust throughout 2014. Park Royal has seen strengthening tenant demand over the past 12-18 months due to its core industrial location in London, with good communication links and a significant critical mass of occupiers. We believe rental growth prospects are good, which will assist in achieving excellent returns for our investors.”
DTRE represented M&G Real Estate; CBRE acted for Standard Life Investments.
joanna.bourke@estatesgazette.com
