Valor Real Estate Partners (Valor) has expanded its footprint in London by adding 500,000 sq ft (46,450 m2) of industrial space with six acquisitions in core London sub-markets for a total consideration of £250 mln (€297 mln).
The transactions include the acquisition of Gemini Park, located in Beckon and comprising 14 Grade A industrial buildings, ranging in size from 13,000 to 115,000 sq ft. The buildings, developed in 2007, are let to blue-chip occupiers including Hermes, Fedex and Royal Mail.
Valor, which acquired 1.64 acres of land on the estate for development in 2021 in a separate transaction, intends to deliver additional storage space and bring forward a phased refurbishment of the existing buildings.
In Hackney, Valor has agreed a sale and leaseback with a private food distribution business for a 29,000 sq ft industrial estate comprising three separate buildings. The estate sits either side of the A12, just 4 miles from the City of London and close to the Olympic Park. Valor will progress a full refurbishment of the development of the site upon expiry of the lease in 2023.
In Charlton, South East London, Valor has agreed a 24-month sale and leaseback with a private utilities business for a 10,000 sq ft low site cover warehouse unit. The asset is located in the Charlton Riverside regeneration area, which comprises 275-acres of former industrial land that has been reallocated to deliver 8,000 new homes and other employment uses.
Valor has also completed the off-market purchase of a 38,400 sq ft industrial estate in Bermondsey, South East London, from a private seller. The estate, which is fully let to an independent self-storage business, offers excellent connectivity to South London, as well as the City of London and Canary Wharf, with a population of over 2 million people reachable within 20 minutes’ drive.
Finally, in Wandsworth, South West London, Valor has completed the acquisition of 1.1-acres of brownfield land. Valor intends to deliver a modern industrial estate on the site, comprising 28,000 sq ft across six new buildings and yard space for vehicular access, to meet demand from last-mile distribution businesses.
Jeremy Achkar, UK transactions lead at Valor, commented: ‘These transactions significantly expand our London footprint and underline our ability to identify and execute opportunities in highly competitive sub-markets. London, the most advanced ecommerce market in Europe, is set to experience significant population growth and at the same time faces a shortage of industrial land as areas are allocated for housing or mixed-use regeneration. This suggests demand will continue to be very strong for modern last-mile facilities and the tightening of availability will drive further rental growth moving forward.’