Segro has acquired a £202.5m (€227.2m) warehouse estate in London from Federated Hermes.

The UK real estate investment trust said it has bought the fully-let 34-acre Perivale Park in West London, which also offers development potential.

Perivale Park provides 55,100sqm of lettable space across 23 units and 8 acres of land which is currently leased as a vehicle compound.

Segro said Perivale Park is leased with a weighted average unexpired lease term of 3.4 years to break and 5.5 years to expiry.

Alan Holland, business unit director for Segro’s Greater London portfolio, said Perivale Park offers an opportunity to build further scale and drive value in an area “where we already have considerable expertise and knowledge of the local market and customer base”.

“It also offers medium-term development and redevelopment potential in one of London’s prime, and most supply-constrained, industrial clusters.”

Colm Lauder, a Goodbody real estate analyst, said Segro’s acquisition is a “decent acquisition of an under-rented portfolio”.

Portfolios of this scale are in very high demand and rarely come to market in London, which is one of Segro’s key growth regions, he said.

“Furthermore, assets like this one highlight how urban logistics present significant rental growth opportunities.”

Lauder said since the estate is located between Greenford and Park Royal, Segro has local knowledge of the tenant base.

He added that the asset’s combined worth should further help with executing the asset management potential at the estate.

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