Crosstree Real Estate Partners, a UK-focused real estate investment business, and Bloom, an urban warehouse investor and developer, have acquired two multi-let industrial estates in London for their £200m (€230.4m) last-mile industrial and logistics joint venture.
The two estates, Hanwell Works in Ealing and 2-7 Centenary Road in Enfield, were acquired off-market with vacant possession for a total of £20.75m. While both assets have undergone “recent light-touch refurbishments”, the partners said they will be fully repositioned to high-quality Grade A multi-let estates with “significantly improved sustainability performance”.
Hanwell Works, a freehold 1.4-acre standalone gated estate totalling 42,552sqft, was acquired from a private investor for £11.15m. It has recently been vacated by Access Self Storage and will be repositioned into four modern units ranging from 4,500sqft to 18,000sqft.
Centenary Road, a freehold 2.1-acre terraced warehouse totalling 33,436sqft, was acquired from a publicly listed property company for £9.6m and will be split into four modern units ranging from 5,600sqft to 11,100sqft.
These acquisitions represent the second and third assets for the joint venture, following the acquisition of Fairview Business Centre in Hayes from A2 Dominion Group in September last year for £30m.
The joint venture targets underinvested assets in supply-constrained Greater London sub-markets that can be improved to grade A quality with enhanced sustainability credentials.
Tom Davies, co-founder and managing partner of Bloom, said: “These acquisitions are a strong fit for our joint venture with Crosstree, as they are well-configured assets that we have purchased below replacement cost with clear potential to be upgraded and modernised.
“We remain disciplined with our asset selection with our data demonstrating that Hanwell and Enfield are both under-supplied sub-markets for our proposed unit sizes”.
Liam Singh, managing director, Crosstree, said: “Both Hanwell Works and Centenary Road benefit from strong underlying asset fundamentals and excellent last-mile industrial locations with the opportunity to create institutional-quality assets through targeted refurbishment programmes.
“They represent exactly the type of assets our joint venture with Bloom is seeking.”
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