London: A logistics fund built to prove a development strategy has just delivered its first real-world result, and the price it fetched says plenty about where institutional appetite for London industrial assets currently sits. Fiera Real Estate and Wrenbridge have completed the sale of AIR Heathrow to Tritax London Logistics Fund for €90.2m, marking the first disposal from the Fiera Real Estate Logistics Development Fund's pipeline since the vehicle was launched.
AIR Heathrow is a 67,178 m², 15,050 m² Grade A logistics scheme on 67,178 m² of land south of Heathrow Airport, comprising four units let to occupiers including global freight forwarder AIT Worldwide Logistics. Acquired in two parcels with planning secured in December 2024 and Magrock appointed as contractor, the EPC A+ and BREEAM Excellent development includes PV panels, EV charging, extensive landscaping and a new central lake, credentials that increasingly separate assets that trade quickly from those that sit on the market.
"The sale of AIR Heathrow represents a major milestone for the Fiera Real Estate Logistics Development Fund, marking the first successful exit from the portfolio and demonstrating the value that can be created through our Industrial development strategy. AIR Heathrow represents the characteristics we seek in every investment: a prime location, best-in-class sustainability credentials, high-quality occupier demand, and strong execution by an exceptional development partner," said Chris Button, Head of Investment Management at Fiera Real Estate.
What deserves closer attention from developers watching London's logistics pipeline is the timing of this exit rather than the price alone. Fiera closed this sale in a market Wrenbridge itself describes as challenging for investment and development, yet still secured a buyer prepared to pay for prime specification in a supply-constrained submarket. "Completing the development and securing a sale to Tritax is a fantastic result, particularly against the backdrop of a challenging investment and development market. It is a real endorsement of the quality of the scheme and the hard work of the entire project team," said Harry Gibson, Director at Wrenbridge. For developers weighing whether to proceed with speculative logistics schemes in this cycle, that outcome suggests best-in-class sustainability credentials and prime location are still commanding buyer conviction even when broader market sentiment is cautious.
"This acquisition of a 162,000 sq ft new build mid box estate in the attractive Heathrow area aligns with our disciplined strategy to develop and acquire assets that can offer our investors exposure to Greater London's most resilient industrial and logistics submarkets. This high-quality asset benefits from the significant supply/demand imbalance within the M25 and offers strong rental growth potential," said Nick Ireland, Fund Manager for Tritax London Logistics Fund. Fiera has delivered 1,277,675 m² of logistics space across the UK over the past five years, while Wrenbridge's portfolio extends to 30 logistics schemes and €2.34bn of gross development value. Building on the same track record, Fiera has since launched a further UK logistics strategy in partnership with a major institutional investor.
People mentioned
- Chris Button, Head of Investment Management, Fiera Real Estate
- Harry Gibson, Director, Wrenbridge
- Nick Ireland, Fund Manager, Tritax London Logistics Fund
Companies mentioned
- Fiera Real Estate, European real estate arm of Fiera Capital and vendor of AIR Heathrow
- Wrenbridge, UK logistics developer and delivery partner on the scheme
- Tritax London Logistics Fund, buyer of AIR Heathrow
- Fiera Capital Corporation, parent asset management group of Fiera Real Estate
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