SEGRO, a UK Real Estate Investment Trust (REIT), has expanded its Greater London logistics portfolio by £100 million with off-market acquisitions in Dagenham and Croydon, as well as its July purchase of eight acres of land in Tottenham.
The company completed the purchase of a 64,000 sq ft warehouse unit in Dagenham, via a sale and leaseback with Kuehne + Nagel. The leading global logistics company has signed a 10-year lease on the unit, which is located on Orion Park which adjoins the A13.
In Croydon, SEGRO completed the acquisition of two units on Greenland Way, comprising a total of 176,556 sq ft. The facilities, utilised as a data centre and last-mile parcel delivery unit, are SEGRO’s first acquisitions in Croydon providing a platform for potential future growth in the South London market.
These latest London logistics portfolio transactions follow SEGRO’s commitment to develop a new 185,000 sq ft urban logistics hub in Tottenham, North London, following the off-market acquisition of eight acres of land at White Hart Lane.
“Population growth, land scarcity and the digitalisation of our society present major challenges for London. But with challenges come opportunities and industrial and warehousing space is an important part of the solution. High quality, well-connected acquisitions such as these therefore represent valuable additions to our Greater London portfolio for us and our customers,” said Alan Holland, Business Unit Director for Greater London, SEGRO.
“With available sites at a premium we remain alive to opportunities to acquire assets that complement our existing holdings, particularly in our core London and South East markets where rental growth prospects remain strong and there continues to be high demand for urban logistics and data centres,” added Simon Pursey, Head of UK Investment, SEGRO.
SEGRO currently owns and manages a £3.8 billion portfolio of modern industrial space across London and is the Greater London Authority’s selected development partner for the 86-acre East Plus regeneration scheme, which will deliver a total of 1.4 million sq ft of industrial and employment space.
The acquisitions in Croydon and Dagenham, and development plans in Tottenham, will see SEGRO expand its London portfolio by more than 450,000 sq ft.