Not ajax /databook/industrial/investment-market
Investment market transactions

The sharp upturn in investment activity seen in the second half of 2020 has been maintained into this year, with a total of £1.1bn of transactions recorded in the first nine months of the year. The largest transaction was the £90m purchase of the 350,000 sq ft Iron Mountain storage facility at Isis Reach Belvedere by Reality Income Corporation. Whilst this is the largest industrial and logistics transaction, Blackstone Real Estate and Hudson Pacific Properties purchase of a 91 acre site in Broxbourne for the development of a new film studio did change hands for £130m. The development is subject to planning permission being granted.        

Not ajax /databook/industrial/investment-market
Prime Investment Yields

Industrial prime yields across the Eastern M25 continued to harden in Q2 and Q3, standing at 3.44% at the end of September 2021. Investors continue to target the sector and there remains strong competition for most assets that are brought to the market. Rental growth over the past five years has certainly supported the increased appeal of the sector, with prime rents growing 10.5% per annum across the region as a whole.  Locations within the M25 have seen a stronger growth pattern, with values up by 12.7% per annum compared to 7.5% in outer M25 locations.    

Not ajax /databook/industrial/investment-market

Essex

Key Deal

Childerditch Industrial Park, Brentwood – Brentwood Borough Council purchased the 20 unit and nine storage yard, multi let industrial estate for £59m. The council purchased the park to secure its future and because of its strategic importance to the local area. The park currently provides employment for 800 people. The purchase price reflects a net initial yield of 4.08%.    

Prime industrial yields Essex

East London

Key Deal

Unit B Circular 13, Barking  – pan European logistics investor Mirastar REIM purchased the 96,650 sq ft urban logistics warehouse for £36.1m from M&G Real Estate. The building is currently vacant but will benefit from the recent uplift in rental values in the area when let. Prime rents in Barking moved to £20.00 per sq ft at the end of Q3 2021.      

Prime industrial yields East London

North London & Herts

Key Deal

Heritage House, Enfield – British Land made its first investment into the logistics sector by purchasing the 216,800 sq ft distribution facility in Enfield for £87.25m. The building has been configured to provide two units, which are leased by Waitrose and Crown Records Management. The site allows for a higher density coverage, with British Land increasing their exposure to the urban logistics market. The purchase price reflected a net initial yield of 2.17%.         

Prime industrial yields N London & Herts

SE London & Kent

Key Deal

Mighty Orpington – Aberdeen Standard Investments purchased the 104,462 sq ft distribution facility from Goya Developments and Hillwood Properties for £46.65m. The newly completed facility, which is configured as two units, was recently let to Amazon for 15 years and the price reflects a net initial yield of 3.25%.  

Prime industrial yields SE London & Kent
Not ajax /databook/industrial/investment-market

Our trusted team of experts are ready to help…

Explore our website to see our full range of services or call us on 020 3141 3500

Key Contact

Philip Colman

Philip Colman

Divisional Director
020 3141 3520
[email protected]