Urban logistics JV secures two London industrial estates for refurbishment
Investor Crosstree Real Estate Partners, and urban warehouse investor and developer, Bloom, have acquired two multi-let industrial estates in London for their £200 million last-mile, industrial and logistics joint venture.
By Liza Helps, Property Editor, Logistics Matters
THE TWO estates, Hanwell Works in Ealing and 2-7 Centenary Road in Enfield, were acquired off-market with vacant possession for a total of £20.75 million. Both have undergone recent light-touch refurbishments but will be fully repositioned to high-quality Grade A multi-let estates with significantly improved sustainability performance.
Hanwell Works, a freehold 1.4 acre standalone gated estate totalling 42,552 ft2, was acquired from a private investor for £11.15 million. It has recently been vacated by Access Self Storage and will be repositioned into four modern units ranging from 4,500-18,000 ft2.
Centenary Road, a freehold 2.1 acre terraced warehouse totalling 33,436 ft2 was acquired from a publicly listed property company for £9.6 million and will be split into four modern units ranging from 5,600-11,100 ft2.
These acquisitions represent the second and third assets for the joint venture, following the acquisition of Fairview Business Centre in Hayes from A2 Dominion Group in September last year for £30 million.
The joint venture has been created to invest in underinvested assets in supply-constrained Greater London sub-markets that can be improved to grade A quality with enhanced sustainability credentials.
Bloom co-founder and managing partner Tom Davies, said: “These acquisitions are a strong fit for our joint venture with Crosstree, as they are well-configured assets that we have purchased below replacement cost with clear potential to be upgraded and modernised. We remain disciplined with our asset selection with our data demonstrating that Hanwell and Enfield are both under-supplied sub-markets for our proposed unit sizes”.
Bloom and Crosstree were advised by Bond Land at Hanwell Works and JLL at 2-7 Centenary Road. The vendor of Hanwell Works was advised by JLL and Vokins and the vendor of Centenary Road was advised by SBY Real Estate.
