SEGRO has acquired Perivale Park, a 34-acre urban warehouse estate in Perivale, West London, from Federated Hermes for €227.2m (£202.5m). 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, making it perfectly located for distribution into London. It is also immediately adjacent to Perivale Underground Station allowing easy access for workers on the estate and excellent connectivity for local residents. The scheme provides 55,100m² 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.
Perivale Park is fully let with a WAULT of 3.4 years to break and 5.5 years to expiry. It generates a topped-up passing rent of €7.6m (£6.8m), reflecting a low average in-place rent of approximately €11.2 (£10) per square foot with an ERV of €14 (£12.50) per square foot (excluding the rent for the land).
Alan Holland, Business Unit Director for SEGRO’s Greater London portfolio, said: “Perivale Park is a perfect fit for SEGRO, sitting adjacent to the A40 and nestled between our core holdings in Greenford and Park Royal. 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.”