Valor Real Estate Partners (Valor) acquired, on behalf of its joint venture (JV) with QuadReal Property Group (QuadReal) a prime last mile distribution centre in Purfleet, East London, for c. €154.7m. It represents the JV’s largest single asset acquisition to date, and largest of a single-let last mile asset in the UK since 2022.
The c. 58,500m2 cross-docked distribution centre on Dolphin Park is let to Tesco, with nine years remaining to lease expiry.
The building provides unique specifications for the submarket with 41% site coverage, 110 loading doors and yard depths ranging from 50m to 60m. The unit serves as a distribution and storage facility for ambient goods to stores across London and the southeast, with an average of 800 truck movements per day, and 1,200 employees working at the facility.
The asset is located in the M25 corridor, close to the Dartford Crossing and the major ports at Tilbury and London Gateway, making it ideally suited for food distribution. It offers excellent connectivity to the road network via the A13 with a population of c. 11.4 million accessible within a 60-minute drive-time.
The transaction takes the amount deployed by the JV across key London urban logistics submarkets to c. €1.3b since Q4 2020.
Jeremy Achkar, Senior Vice President at Valor, added: “This transaction represents a rare opportunity to acquire a core urban logistics asset of scale in one of London’s most competitive submarkets in the M25 corridor and close to major ports. It is further evidence of our ability to identify and execute opportunities through the market cycle.”
Thomas Blangy, Senior Vice President at QuadReal Property Group, said: “Our long-term investment strategy targets high-growth urban logistics hubs and this transaction expands our allocation within a globally resilient and high-performing asset class.”
Image source - Valor.
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