Savills Investment Management has sold Mowlem Trading Estate in Tottenham, North London to Goodman for an undisclosed sum.
Comprised of 17 high-specification trade counter and logistics units, the estate totals c. 212,000 sq ft of gross internal area.
Savills IM said Mowlem Trading Estate has excellent accessibility to the A406 North Circular Road, M25 and M11, making it an exceptional location for occupiers serving both Central London, Greater London and the South East.
”The asset was marketed as an opportunity to acquire a prime multi-let industrial estate in Greater London offering reversionary income potential underpinned by long-term residual value,” said the company in a press release.
The asset had been owned by a FTSE 100 Corporate Pension Fund client of Savills IM for over 20 years.
The estate was redeveloped and remodelled in three phases from 2013-20 by Savills IM and development manager Aitchison Developments.
Over 90% of the estate is let by floor area to 15 tenants, who operate across a range of sectors and include Travis Perkins, UK Capacity Reserve, Tortilla, Pendragon and Bunzl.
”Mowlem Trading Estate has always enjoyed strong tenant interest throughout our client’s long period of ownership. The decision to invest in the estate to redevelop and improve the look and feel of it over the past 10 years has paid dividends both in terms of rental growth and valuation upside and resilience. The tenant line up gives a strong mix of both national and local covenants and our tenant retention rate speaks volumes in terms of the Estate’s dominance in its local market and the quality of product,” said Lucy Winterburn, Director, Savills Investment Management.
”It is well known that the COVID-19 pandemic has significantly accelerated the shift to ecommerce and this, combined with reduced stock of industrial space in and around London caused by high value competing land uses – particularly residential development, has seen vacancy rates falling to historic lows. Tottenham’s proximity to Central London has only increased demand over time, as suppliers have looked to position themselves to service the city, but its close access to the North Circular also appeals to those tenants with a Greater London focus,” he added.
”Mowlem Trading Estate, Tottenham, is a truly prime logistics asset and it is no surprise that the sale price achieved reflects a new market benchmark. Assets of this kind located in Greater London continue to attract interest from a wide range of investors from the UK and increasingly elsewhere around the globe, including Asia, Australia and North America. UK logistics remains the most sought after asset class in property, with a record breaking £7.5bn traded in the sector during H1 2021,” said Tom Scott, director in the logistics investment team at Savills, who advised on the sale.