Valor acquires Crawley urban logistics estate (GB)

Valor acquires Crawley urban logistics estate (GB)

Valor Real Estate Partners has completed the acquisition of a 54,000ft² three-unit industrial estate in Crawley, adjacent to Gatwick Airport, from a fund managed by State Street. It represents Valor’s fourth acquisition in what is the dominant industrial submarket south of the M25, on the edge of the Greater London Green Belt, with 2.6 million people accessible within a 60-minute drive time.

 

The highly functional, low site-cover 31,000ft², 12,200ft² and 11,700ft² units are occupied by UPS, the global 3PL, car dealership Hendy Group and FTSE-listed equipment tool and hire company HSS Hire Service Group, respectively.

 

Crawley benefits from its strategic location six minutes’ drive from Gatwick Airport and nine minutes’ drive from the M23. The submarket is characterised by a chronic demand-supply imbalance, primarily driven by the conversion of industrial land to higher-value uses. This has underpinned strong rental growth and record-low vacancy rates, with constrained regional supply and a limited development pipeline forecast to maintain this trend. Following this transaction, Valor now owns more than 200,000ft² of warehouse space in Crawley, across four properties, occupied by a mix of global and domestic businesses.

 

This acquisition takes Valor’s portfolio to more than 85 assets totalling over six million ft² of urban logistics, primarily located in London and Paris, which is well-positioned to benefit from the acceleration of eCommerce and urbanisation.

 

Jeremy Achkar, UK transactions lead at Valor, commented: “This off-market transaction is another strong addition to our portfolio, in what is one of the prime industrial hubs of South London and where we now have a significant footprint. The estate appeals to a wide range of occupiers, as evidenced by the current tenant base, and the low site cover offered will continue to drive occupational interest in the long-term, as last-mile operators, in particular, seek increasing amounts of yard space at their warehouse facilities.”

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