Bloom, the industrial investor and developer, and TPG Angelo Gordon, a diversified credit and real estate investing platform within TPG, have acquired Poplar Business Park, a prime multi-let industrial estate next to Canary Wharf in east London.
The property was purchased from Workspace Group for £21.5 mln (€25 mln).
Poplar Business Park comprises 75,345 ft2 (7,000 m2) of industrial and business space across 29 units, ranging in size from 652 ft2 to 11,148 ft2.
Tom Davies, co-founder and managing partner of Bloom, said: 'Poplar Business Park is another fantastic addition to our portfolio, giving us a prime, highly-reversionary asset in inner east London. The acquisition aligns with our strategy to provide well-designed, sustainable, and modern units in supply-constrained inner London sub-markets.'
There are 19 tenants, including Colt Technology Services, NTL National Networks, and Tower Hamlet Homes, and the weighted average unexpired lease term is 2.1 years to breaks and 4.4 years to expiries.
Located in London Docklands, the site is adjacent to Canary Wharf and London City Airport, in the borough of Tower Hamlets, which is expected to be one of the largest providers of new homes in London over the next 10 years.
Although the 2.4-acre (1 ha) site has planning consent for 222 homes plus commercial space, Bloom and TPG Angelo Gordon intend Poplar Business Park to remain an industrial estate and plan to carry out a refurbishment that will improve the property’s EPC rating to ‘A’.
This acquisition is the seventh in London since the inception of Bloom’s joint venture with TPG Angelo Gordon in 2021. Bloom and TPG Angelo Gordon acquired the other six London assets in Brixton, Greenwich, Hackney, Fulham, Camberwell, and Park Royal, representing a mix of refurbishment and ground-up redevelopment projects.
These seven assets will provide approximately 285,000 ft2 of multi-let industrial and business space with strong sustainability credentials – earning EPC ratings of ‘A’ or ‘A+’ and BREEAM ratings of ‘Very Good’, ‘Excellent’, or ‘Outstanding’ – in TfL Zones 2 and 3.
Refurbishment and development work on all seven assets is expected to be completed in the next year.
Sam McGirr, co-founder and managing partner of Bloom, said: 'Our seventh ultra-urban project in London aims to support the changing needs of businesses and consumers, who are seeking speed and convenience. We are committed to helping address the need for highly sustainable warehouse space in London, which has become increasingly important but is currently severely lacking.'
Mike Diana, managing director, Europe Real Estate at TPG Angelo Gordon, said: 'We are very excited to add another asset to a portfolio that we believe is amongst the highest quality of its kind in Europe. We’ve seen robust tenant interest in industrial space and look forward to continuing to meet the high demand for these types of facilities moving ahead.'
Bloom and TPG Angelo Gordon were advised by Acre Capital Real Estate, and Workspace Group was advised by CBRE.
