A joint venture between Bloom and Angelo Gordon has purchased a prime multi-let industrial estate in Park Royal, west London, from Schroders Capital.
The freehold estate in Eldon Way comprises a terrace of 12 modern units totalling 30,428ft². It is let to 11 tenants with one vacant unit.
The weighted average unexpired lease term is 2.3 years to breaks and 3 years to lease expiries.
Eldon Way is a private road, accessed off Abbey Road, the principal north-south spine road through Park Royal. From the estate, there is quick access to the North Circular (A406) to the north and Western Avenue (A40) to the south west. Park Royal, the largest industrial estate in the UK, is characterised by consistent occupational demand, low vacancy rates and strong rental growth. Occupiers favour the location given its proximity to Central London, the availability of transport communications via road and rail and the access to a significant workforce.
Tom Davies, co-founder and managing partner of Bloom, said: “Eldon Way is a fantastic addition to our portfolio, giving us important west London coverage. The opportunity to acquire a modern, core, multi-let asset in the heart of Park Royal is rare. The occupational market in London remains robust, with severely restricted supply and availability”.
Chris Leek, Real Estate Fund Manager at Schroders Capital, said: “The sale of Park Royal Industrial Estate is in line with our strategy to divest out of low yielding assets once we have completed the business plan to improve the asset’s income profile by driving rental growth at lease events and leasing vacant units The sale reflects a strong profit over and above the current valuation. The characteristics of the occupational market in Park Royal remain strong and we have captured significant rental growth during our hold period that has resulted in sustained outperformance”.