SEGRO plc has acquired Perivale Park, a 34 acre urban warehouse estate in Perivale, West London, from Federated Hermes for £202.5 million.
The estate is located in SEGRO’s core west London cluster alongside the A40 main road into Central London and within 2 miles of London’s inner arterial road, the North Circular Road, making it perfectly located for distribution into London. It is also immediately adjacent to Perivale Underground Station allowing easy access for workers on the estate and excellent connectivity for local residents.
The estate provides 55,100 sq m of lettable space across 23 units and 8 acres of land which is currently leased as a vehicle compound but has medium term development potential.
Park is fully let with a WAULT of 3.4 years to break and 5.5 years to
expiry. It generates a topped-up passing rent of £6.8 million,
reflecting a low average in-place
rent of approximately £10 per square foot with an ERV of £12.50 per
square foot (excluding the rent for the land). This compares to current
market rents in the region of £15 to £20 per square foot in SEGRO’s £1.5
billion portfolio of estates in Park Royal
and Greenford. Reflecting these low current rental levels, the
topped-up net initial yield (excluding the land) upon acquisition is 3.5
per cent and the equivalent yield is 4.3 per cent.
Source : SEGRO