Park Royal warehouse site sells for circa half its 2021 value
A 2.9 acre site in Park Royal with planning permission for a circa.111,000 ft2 plus warehouse has sold for £24.51 million roughly half its value in 2021 when the site sold for around £48 million.
By Liza Helps, Property Editor, Logistics Matters
SUNRISE REAL Estate has snapped up the freehold site at 12 Waxlow Road which has planning permission for the demolition of an existing 42,079 ft2 warehouse and redevelopment of the site to provide a warehouse unit of 111,492 ft2.
It bought the property at an equivalent price of £8.45 million an acre, from Marq Logistics which in turn owned the site through its acquisition of developer GLP last year. GLP secured the site in 2021 for a then record price of £48 million.
Sunrise Real Estate Head of Investment Kyle Streitburger, said: “This acquisition aligns strongly with our strategy of targeting high-quality industrial assets in supply-constrained urban locations. Park Royal continues to demonstrate robust occupational demand, and the combination of short-term income with a clear development pathway presents a compelling opportunity for Sunrise as we look to deliver best-in-class logistics space in London.”
The site at 12 Waxlow Road currently provides short-term income from the existing 42,000 ft2 warehouse, but the compelling opportunity lies in the detailed planning consent for a new 111,492 ft2 prime logistics facility.
The planning permission secured by GLP envisages a property with 15m eaves, 60,515 ft2 of warehouse space as well as a further 20,979 ft2 of space at mezzanine level. There will be two dock and four level access doors with 33m yard space. There are nine car parking spaces.
With original planning documents, noting that the property is expected to secure BREEAM Excellent and EPC A ratings and provide up to 121 full time equivalent jobs once operational and up lift form the current 47.
The site was originally up for sale through Savills in 2021 – at the height of the Covid pandemic when there was record take-up of warehouse space to cope with the surge in online spend – with a guide price of £23 million but competitive bidding pushed the price up. The facility was at the time let to Panalux on a 20-year lease expiring in 2023.
LSH acted on behalf of Sunrise Real Estate, with SBY Real Estate acting as joint agents on the acquisition. The vendor was advised by Levy Real Estate and Savills.
