Prologis, a leading owner and developer of UK logistics real estate, has continued its focus of strategic investments in London and the South East UK markets with the acquisition of two additional sites at Erith (pictured) and Croydon.
Totalling over 330,000 sq ft on 20.4 acres, the two distribution centres are let to Ocado and Royal Mail and form key parts of their distribution networks, being two of the largest low-density last-mile logistic facilities inside the M25.
The assets, on Church Manorway, Erith and Beddington Farm Road, Croydon are located in two London markets that continue to see excellent customer demand whilst servicing significant, growing conurbations.
Erith is considered a major growth area for jobs, transport and industry, providing easy access to central London and M25 connectivity to the wider motorway network, whilst Croydon is a densely populated south London location popular with a number of last mile delivery customers. The purchases of both assets will add to Prologis’ existing holdings in these markets.
Paul Weston, Regional Head of Prologis UK, said: “Our purchase of these two prime distribution facilities shows our continued confidence in the UK’s logistic sector and reconfirms our strategic focus in London and the South East. We welcome Ocado as a new customer and look forward to working with them. It’s great to expand our strong relationship with Royal Mail at a location well known to both parties.”
Erith was acquired from a UK fund, whilst Croydon was acquired from a segregated mandate client of CTI Real Estate. Prologis was advised by JLL on Erith and Knight Frank on Croydon. Gerald Eve and Acre Capital advised the vendors.
Matthew Howard, Fund Manager at CTI Real Estate Partners, said: “We are delighted with the sale of Mail Centre Croydon, which continues our client strategy of recycling capital into a more diversified pool of higher-yielding assets.”