UK real estate investment trust Segro has bought a £133m (€144m) warehouse estate from a Schroder Real Estate fund.

Segro said it has acquired Electra Park, a 13-acre urban warehouse estate in London, from Schroder UK Real Estate Fund (SREF).

Electra Park offers 21,200sqm of lettable space across 10 units of which nine are let, with the final unit currently under offer, Segro said.

Alan Holland, business unit director for Segro’s Greater London portfolio, said: “This acquisition is an exciting opportunity for Segro to consolidate its leading London footprint and is a strong fit with its well established prime urban warehouse portfolio.

“Situated on the edge of Zone 2, at the gateway between central London and the rest of our East London assets, it is in an area that is currently undergoing significant redevelopment and modernisation. This should further improve the already attractive supply/demand dynamics and create the potential for strong rental growth, as we have seen happen in other inner London markets.”

Schroders said SREF’s decision to sell the business park comes upon completion of the business plan for the asset, after recently agreeing terms on the last remaining unit with a US tech firm.

SREF will now focus on crystallising the strong performance from Electra by reinvesting the capital into the fund’s development pipeline and higher-yielding investment opportunities, such as the recently announced acquisition of One Cambridge Square, Cambridge, the manager said.

Jessica Berney, fund manager of Schroder UK Real Estate Fund, said SREF’s strategy is to divest out of low yielding assets where the business plan has completed and reinvest into performance-enhancing assets.

“We have several considerable development and capex projects underway or due to begin imminently in Croydon and Cambridge and at our industrial schemes in Hartlebury, Park Royal and Crayford.

“The capital secured from this transaction will maintain the progress so that we can seek to continually deliver strong returns for our investors.”

To read the digital edition of the latest IPE Real Assets magazine click here.