Prologis UK, a leading investor, owner and developer of logistics property, has bought a highly sought-after Park Royal trophy asset, expanding its existing portfolio within the capital. The acquisition reinforces the company’s commitment to London and the South East, with the latest foreign direct investment taking Prologis’ Assets Under Management in the UK to $9.6bn (£7.4bn), of $199bn assets managed globally by the REIT.
Located in the UK’s most sought after last touch market, Prologis Park Western Avenue is a highly prominent mixed-use logistics, industrial and retail park. Benefitting from exceptional transport links, the Park has an extensive frontage and direct access to the A40 dual carriageway, providing quick access to London’s inner orbital road, motorway network and the centre of the capital. Five underground stations are accessible within 15 minutes’ walking distance.
Paul Weston, Regional Head of Prologis UK, said: “This acquisition is a significant milestone for Prologis. It reinforces our strategic investment commitments to the UK industrial and logistics market here in London, supporting the growth of our national economy.
“Park Royal is the most successful logistics location in the capital. Through confident and swift work with everyone involved, we’ve secured a new park which will complement our existing portfolio, ensuring that we stay at the forefront of the UK’s logistics sector.”
Totalling 288,523 sq ft across a contiguous site of 16.14 acres, the estate is currently leased to 21 customers. The acquisition increases Prologis’ presence at Park Royal, and features a mix of urban logistics and retail warehousing that will appeal to a broad range of customers.
Kevin O’Connor, Senior Director at DTZ Investors said: “The asset was sold to fulfil the long term strategy of the Fund managed by DTZ Investors. This transaction reflects the continuing strength of demand for prime inner London Industrial estates required to serve the capital. The Fund acquired the West Five retail park in 2016, adding it to the existing Western Avenue Business Park holding and enhancing the overall attractiveness of the asset to potential investors.”
The site offers potential for future redevelopment which could expand and increase density at the site, including data centres and logistics fulfilment centres. These plans could reinforce the digital and physical infrastructure needed to support London’s growth and be developed to Prologis’ high standards of quality and sustainability.
Prologis was represented by DTRE, DTZ Investors was represented by ACRE Capital Real Estate.