Schroders Capital’s real estate team has completed the sale of two prime urban logistics estates to Prologis UK for €237.3m (£200m). The two estates, based in Park Royal and Watford, comprise over 362,000ft² of last-mile logistics accommodation, spanning a total of 17 acres, and are 100% leased to occupiers operating in diverse industry sectors including distribution, construction, and pharmaceutical, as well as film and television.
Central Park is located on Central Way, in Park Royal and is an urban logistics park, providing 162,000ft² of accommodation across 10 highly specified warehouse units within an independent and well-maintained business park environment. The estate was developed on a 6.5-acre site in 2013 to a BREEAM ‘Excellent’ specification. It provides a diverse income profile with an AWULT of 5.6 years to break and 6.9 years to lease expiries.
Imperial Park is located on Imperial Way in Watford and provides 200,000ft² of high-quality industrial and trade counter accommodation across 15 units, developed in two phases between 2000-2009. It is let to 12 tenants, with 86% of the income secured against covenants rated ‘Minimum Risk’ or ‘Lower than Average Risk’ by Dun & Bradstreet, with occupiers including Selco, Screwfix, Vodafone, and Sigma Pharmaceuticals and benefits from an AWULT of 5.7 years.
Philip Scott, Portfolio Manager, Schroders Capital, said: “The disposal crystallises strong performance for our client following asset management activity at Central Park where a new tone of rent has recently been achieved. The disposal demonstrates our ability to position assets to meet continued strong demand for prime industrial assets against a backdrop of a more uncertain investment market.”
