Valor Real Estate Partners (Valor) has acquired Tera 40 industrial estate on Auriol Drive, Greenford, for c. €169m. The estate comprises four modern distribution assets totalling c. 31,647m2 which are fully let to Tesco, Palletways, Royal Mail and Micheldever. The estate sits on a c. 76,890m2 site, providing up to 285 car parking spaces and up to 63m clear yard space. The buildings on the estate average a site coverage of c. 40%.
The asset's location offers excellent road connectivity via the A40, with the North Circular (A406) and M25 (Junction 16) both within a 15-minute drive. Greenford is one of London’s most competitive industrial submarkets, with the re-allocation of land for residential uses seeing total industrial stock decline more than 13% since 2013. Continued strong demand from e-commerce and logistics businesses in particular is supporting a low level of vacancy and driving rental growth.
Jeremy Achkar, Head of UK Investment, Valor, said: “This prime last mile estate represents a rare opportunity to acquire modern distribution space at scale in one of West London’s most competitive sub-markets. We view the real estate as impossible to replicate and replace, and its functionality and location is entirely consistent with our deployment strategy across London.”
Ed Hockley, Executive Director, Lothbury Investment Management, added: “This asset has been in the Fund since inception and Lothbury developed the majority of the estate ourselves, demonstrating the strength of our in-house development capability and the conviction of our Core / Active approach to investing. The asset is now too large for the Fund and is being sold to mitigate asset concentration risk.”
Valor was represented by Cogent Real Estate and Simmons & Simmons; Lothbury was represented by Gerald Eve and Travers Smith.
