Prologis UK, an investor, owner and developer of logistics property, has bought an asset in Park Royal, London, expanding its existing portfolio within the capital. 

Park Royal Western Avenue

Park Royal Western Avenue

The investment brings Prologis’ assets under management in the UK to £7.3 bn (€8.7 bn), of £150 bn assets managed globally by the REIT.

Financial details were not disclosed, but CoStar reported the deal volume at around £125 mln.

Located in key last mile location, Prologis Park Western Avenue is a mixed-use logistics, industrial and retail park. The Park has an extensive frontage and direct access to the A40 dual carriageway, providing quick access to London’s inner orbital road, motorway network and the centre of the capital. Five underground stations are accessible within 15 minutes’ walking distance.

Paul Weston, regional head of Prologis UK, said: 'This acquisition is a significant milestone for Prologis. It reinforces our strategic investment commitments to the UK industrial and logistics market here in London, supporting the growth of our national economy.

'Park Royal is the most successful logistics location in the capital. Through confident and swift work with everyone involved, we’ve secured a new park which will complement our existing portfolio, ensuring that we stay at the forefront of the UK's logistics sector.'

Totalling 288,523 ft2 (26,800 m2) across a contiguous site of 16.14 acres (6.5 ha), the estate is currently leased to 21 customers. The acquisition increases Prologis’ presence at Park Royal, and features a mix of urban logistics and retail warehousing that will appeal to a broad range of customers.

Kevin O’Connor, senior director at DTZ Investors said: 'The asset was sold to fulfil the long term strategy of the Fund managed by DTZ Investors. This transaction reflects the continuing strength of demand for prime inner London Industrial estates required to serve the capital.

'The fund acquired the West Five retail park in 2016, adding it to the existing Western Avenue Business Park holding and enhancing the overall attractiveness of the asset to potential investors.'

The site offers potential for future redevelopment which could expand and increase density at the site, including data centres and logistics fulfilment centres, Prologis said.

Prologis was represented by DTRE, DTZ Investors was represented by ACRE Capital Real Estate.