M&G Real Estate has announced the £22.625 million acquisition of a 106,910 sq ft distribution warehouse in Park Royal, London from Standard Life Investments, representing a net initial yield of 5.25%.
One Park Royal is let in its entirety to Enotria Wine Cellars Limited on a full repairing and insuring lease for a term of 15 years, expiring in May 2029.
Following an expansion programme, One Park Royal is to become Enotria's new UK Headquarters.
Set in 1,800 acres - 8 miles to the west of Central London - Park Royal is the largest industrial area in Europe and home to around 2,000 businesses.
Commenting on the acquisition, Adam Coulston, M&G Real Estate’s Director of Investment Management, said: “Investor demand for UK distribution warehousing has remained robust throughout 2014. Park Royal has seen strengthening tenant demand over the past 12-18 months due to its core industrial location in London, with good communication links and a significant critical mass of occupiers. We believe rental growth prospects are good, which will assist in achieving excellent returns for our investors.”
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