SEGRO pays £200m for London warehouse park
Perivale Park in West London has been acquired by SEGRO for £202.5 million
SEGRO plc has acquired Perivale Park, a 34-acre urban warehouse estate in Perivale, West London, from Federated Hermes for £202.5 million.
The estate provides 55,100 sq m of lettable space across 23 units and 8 acres of land, which is currently leased as a vehicle compound, but has medium term development potential.
The estate is located in SEGRO’s core west London cluster alongside the A40 main road into Central London and within 2 miles of London’s inner arterial road, the North Circular Road, giving access for distribution into London. It is also immediately adjacent to Perivale Underground Station.
Perivale Park is fully let and SEGRO feels that the current in-place rent of approximately £10 per square foot is below market values, with SEGRO reporting rents of £15 to £20 per square foot in its Park Royal and Greenford estates.
“Perivale Park is a perfect fit for SEGRO, sitting adjacent to the A40 and nestled between our core holdings in Greenford and Park Royal,” said Alan Holland, Business Unit Director for SEGRO’s Greater London portfolio.
“It offers a rare opportunity to build further scale and drive value in an area where we already have considerable expertise and knowledge of the local market and customer base. It also offers medium-term development and redevelopment potential in one of London’s prime, and most supply-constrained, industrial clusters.”
SEGRO was advised by Altus Property Services. ACRE Capital Real Estate acted on behalf of Federated Hermes.