Location

Heathrow, London

Project

Off-market acquisition of vacant prime warehouse in Q4 2023

Activities

Following an off-market acquisition of a vacant prime warehouse in Q4 2023, we appointed new letting agents, refreshed marketing materials, and relaunched the unit to the market. Capex was invested to improve the presentation of the unit, and a letting was secured within five months of acquisition.

Results

The property was acquired for £11.65m, reflecting a 6.53% yield and £359 per sq ft. An off-market approach valued the asset at approximately £16m, reflecting a 4.75% yield and £493 per sq ft. A letting was secured to a global blue-chip tenant within four months of acquisition on a 10-year term with inflation-linked rent reviews to a minimum of 3% per annum. Off-market approaches have been received at a 4.75% net initial yield, delivering strong profit and outperformance.