Last-mile real estate specialist Valor Real Estate Partners has agreed to acquire the Tera 40 industrial estate in Greenford, West London, for £146 mln (€170 mln).
The estate comprises four modern distribution assets totalling 340,650 ft2 (31,650 m2) which are fully-let to Tesco, Palletways, Royal Mail and Micheldever.
Jeremy Achkar, head of UK Investment, Valor, said: 'This prime last mile estate represents a rare opportunity to acquire modern distribution space at scale in one of West London’s most competitive sub-markets.
'We view the real estate as impossible to replicate and replace, and its functionality and location is entirely consistent with our deployment strategy across London.'
The estate sits on a 19-acre site (8 ha), providing up to 285 car parking spaces and up to 63 metre clear yard space. The buildings on the estate average a site coverage of 40%.
According to Valor, Greenford is one of London’s most competitive industrial submarkets, with the re-allocation of land for residential uses seeing total industrial stock decline more than 13% since 2013.
Continued strong demand from e-commerce and logistics businesses in particular is supporting a low level of vacancy and driving rental growth.
Ed Hockley, executive director, Lothbury Investment Management, added: 'This asset has been in the Fund since inception and Lothbury developed the majority of the estate ourselves, demonstrating the strength of our in-house development capability and the conviction of our Core / Active approach to investing.
'The asset is now too large for the fund and is being sold to mitigate asset concentration risk.'
Valor was represented by Cogent Real Estate and Simmons & Simmons; Lothbury were represented by Gerald Eve and Travers Smith.
