M&G Real Estate has bought out Segro in a UK warehouse joint venture.

The Heathrow Big Box joint venture has been concluded 12 months ahead of its original termination date.

M&G Real Estate takes full ownership of the Heathrow Corporate Park, paying £118.7m (€164.3m).

It will also purchase HCH House in Poyle directly from SEGRO for £15m.

Andrew Windle, associate director at M&G Real Estate, said the assets provided “very good exposure to the Heathrow market, where there is limited supply, which should provide strong rental growth and returns for our investors”.

The joint venture was formed between Brixton and M&G Real Estate in 2004 to own Axis Park and Heathrow Corporate Park.

Segro inherited the 50% interest following its take-over of Brixton in 2009.

Heathrow Corporate Park, a 541,000 sq ft warehouse and around two miles from Heathrow Airport, is fully let to tenants including British Airways, Sunguard Availability Services and Morgan Stanley UK.

HCH House, a 61,000 sq ft asset, is let to Heathrow Cargo Handling until November 2031 with a tenant break in 2021.