Central London warehouse pricing hits new highs

Property consultancy, Allsop, which brokered the deal, said the price reflected a net initial yield of 2.5% and a capital value of £623 per ft2, and equating to more than £44 mln per acre – a new record for the UK warehousing sector.

Imperial Studios, in the London Borough of Hammersmith & Fulham, is a two-storey building spanning 30,645 ft2 (2,850 m2), made up of industrial and office space.

Currently arranged as 16 separate units, the property is let to 13 tenants with occupiers ranging from antique dealers to coffee workshops and workspace users, passing off an average rent of just under £17.00 per ft2, with potential for significant reversion.

Planning permission has already been granted for a commercial-led redevelopment that would increase the GIA by 73% to 53,969 ft2.

James Salmon, associate partner at Allsop, said: 'Imperial Studios benefits from an attractive existing tenant lineup, an enviable location in an affluent and well-connected area, and compelling redevelopment possibilities.

'This combined with the strength and resilience of this market – central London industrial and neighbourhood London office - makes it an exceptional investment opportunity.

'Moreover, demand for warehousing assets has reached new heights across the country over the past few years, with quality London-based industrial schemes becoming increasingly hard to come by, which is reflected in a competitive off-market process and a record-setting sales price.'

Andrew Inglis, fund manager at Structadene Group, said: 'Imperial Studios has been a very strong asset in our portfolio for around 15 years, offering stable rental returns with future reversion and redevelopment opportunities.

'Having obtained planning permission, we were delighted to have capitalised on the market demand and sold this prime scheme off-market via Allsop, whose knowledge, expertise and understanding of the commercial real estate market complemented ours.'

Montagu Evans acted for AG Bloom.