SEGRO and M&G Real Estate have dissolved their industrials investment partnership a year ahead of schedule.
The Heathrow Big Box Industrial and Distribution Fund was set up in 2004 and set a termination date of June 2016.
Originally a joint venture between Brixton and M&G RE, SEGRO took over Brixton’s 50% interest in 2009 when it acquired the company.
The jv still owned three assets at the time of the dissolution: Axis Park Slough, covering 656,000 sq ft; Heathrow Corporate Park, covering 541,429 sq ft; and HCH House, a 61,500 sq ft unit also in Slough.
Following the break, SEGRO will sell HCH House to M&G for £15m and M&G will retain the Heathrow Corporate Park, which is worth £118.7m. SEGRO will take full ownership of Axis Park, worth £144.9m.
The transaction is due to complete before the end of the month.
Phil Redding, chief investment officer at SEGRO, said: “Axis Park is in a prime position both for serving Heathrow Airport and for distribution to London and the South East, and this transaction allows us to increase our wholly-owned exposure to the attractive Heathrow market. We know the park well and, with occupier demand for urban distribution space improving and supply conditions remaining tight, there are opportunities to realise further value from this asset.”
