Last year (2025) saw a strong second half of the year push investment activity to £1.2bn, with the majority of activity focused on assets below £25m. The largest transaction was Valor Real Estate Partners purchase of the 630,000 sq ft Tesco Distribution Centre in Purfleet for £128m, representing a net initial yield of 5.50% in the early part of the year. Activity has remained relatively buoyant in the first three months of 2026, with initial estimates of activity around £238m, including German asset management's group DWS Asset Management purchasing Sainsbury’s 280,200 sq ft Charlton Distribution Centre from Santander Pension Fund for £123.2m. Sainsbury’s have 44 years remaining on its lease of the building.
Industrial prime yields across the Eastern M25 have continued to harden over the six months to Q1 2026, standing at 5.13% on average, despite the upward shift in long term interest rates, with 10 year gilt yields moving up to 4.88% in the light of the Middle East crisis. East London continues to be the lowest yielding sub market across the Eastern M25, with prime yields at 4.75% and there are signs that the occupational market is improving. South East London & Kent remains the highest yielding sub market, with prime yields at 5.50%, with Essex at 5.25% and North London & Herts remaining at 5.00%.
Argos Distribution Centre, Basildon – Tritax Big Box purchased the 374,900 sq ft Argos Distribution Centre in Basildon from Blackstone as part of a Big Box portfolio acquisition. The portfolio was purchased for £444m, with the purchase price for the Argos facility estimated at £60.9m.
Beckton Trade Park, E6 – Argo Real Estate purchased the 131,400 sq ft 14 unit Beckton Trade Park from Unilever Pension Fund for £34m. The purchase is part of the brown to green urban logistics strategy fund in partnership with Blue Coast Capital. The park was built in the 1980’s and has a tenant list which includes Howdens, Screwfix and Rexel.
Edmonton Trade Park, N18 – Clipstone Investment Management purchased the 49,829 sq ft Edmonton Trade Park from Swiss Life for £17.5m. The park comprises 10 units with tenants including Screwfix, Howden and Euro Car Parts and provides asset management opportunities with one vacant unit and upcoming lease events. The purchase price reflects a net initial yield of 4.99%.
LOC 8, Maidstone – Aberdeen Investors purchased the 190,840 sq ft four unit Phase 1 of the LOC 8 scheme in Maidstone from Clearbell Capital for £43.89m. The first phase was completed in Q2 2023 and was fully let shortly after completion. Tenants include Zehnder Group, Medequip and Envirotainer, with the purchase price reflecting a net initial yield of 4.84%.
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