Lothbury secures prime Heathrow industrial estate (UK)

Following very strong competition from institutional purchasers, Lothbury Investment Management has completed the purchase of Colndale Industrial Estate in Poyle, two miles from London Heathrow Airport, for £14.35 million (approx. €16.67 million) at a yield of 6.36%. The purchase has been made on behalf of Lothbury Property Trust; the vendor was Harbert European Real Estate Fund II, LP and its affiliates.

Colndale Industrial Estate is fully let, with 10 units totaling 88,723 ft² (approx. 8,242 m²) on a net site area of 5.28 acres. Tenants on the site include Goldstar Heathrow, Wilder Logistics, Everest and Worldnet Shipping.

Jo Bond, director at Lothbury Investment Management, said: “Competition for this asset was very strong so we are extremely pleased with the purchase. It is a first class location just two miles from Heathrow. There is huge demand for space in the area, which is reflected in the fact that the estate is fully let, mainly to logistics and distribution companies.

“Colndale Industrial Estate fits very well within our property portfolio. It is in a strategic location and produces a healthy income yield. Land supply is tight in the area as the estate is surrounded by green belt and with a low site coverage, there are excellent opportunities for active management, with re-development potential in the medium term. The purchase also boosts our industrial property weighting in south east England.”

Deloitte acted for Lothbury Investment Management and Dowley Turner Real Estate acted for the vendor.

Source: Lothbury

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