LaSalle purchases two high specification distribution parks in the South East of England for GBP95m
LaSalle Investment Management (LaSalle) has purchased two new high specification distribution parks in the South East of England, for GBP95 million on behalf of Greater Manchester Pension Fund, from Peel Logistics Property and Rockspring TransEuropean Property V Limited Partnership.
Island Road in Reading was completed in May 2017 and provides 253,383 sq ft of space across three distribution warehouses on a 20.5-acre site. Each unit contains modern warehouse space, 12m eaves and fully fitted offices, with dock level and access loading doors in a self-contained service yard with ample dedicated car parking.
Unit B (71,716 sq ft) at Island Road is let to Argos on a 10-year lease, while Unit C (55,229 sq ft) is occupied by Universal Electric Corporation, a global leader in customisable power distribution systems, on a 25-year lease. The remaining space, Unit A (126,438 sq ft), is expected to achieve a rent of around GBP11.50 per sq ft.
South Central in Southampton is being speculatively developed by Peel Logistics Property funded by Rockspring Property Investment Managers LLP, a Patrizia company, and is due for practical completion in July 2018. The 16.12-acre site will provide 202,147 sq ft of space across three distribution warehouses that contain 11m eaves and fully fitted offices with dock level and access loading doors in self-contained service yards with ample dedicated car parking.
Unit 3 (46,079 sq ft) at South Central has been pre-let to John Lewis on a 15-year lease at a rent of GBP9.00 per sq ft. The facility will be used as a .com customer delivery hub, which will provide John Lewis with additional capacity to service both Southampton and the wider south coast region. Unit 1 (116,685 sq ft) and Unit 2 (39,075 sq ft) are expected to achieve similar rental levels.
Both parks are strategically situated close to important distribution networks. Island Road is adjacent to the A33 just 1.5 miles north of J11 of the M4 providing access to the UK motorway network. South Central is just 2.5 miles from Southampton Port, the UK’s second largest and most productive port, and is adjacent to J1 of the M271 for rapid access to the southern motorway network.
Paul Till, Head of National Business Space at LaSalle Investment Management, says: “The acquisitions are part of our strategy to acquire dominant, high quality industrial assets for this portfolio. Island Road and South Central are specifically designed to appeal to logistics and e-commerce occupiers, which is reflected in the quality of the lettings to date. The assets are well-situated within their respective markets of Reading and Southampton to take advantage of nearby distribution networks. Both hubs benefit from strong occupier demand with limited supply, so we anticipate strong rental growth for these high-quality distribution assets.”
LaSalle was advised by JLL and Colliers International acted for Peel Logistics Property and Rockspring the vendor.