Pan-European urban logistics platform Valor Real Estate Partners has acquired an urban logistics asset in Barking, East London, from a private seller in an off-market transaction.
The estate comprises 26,000 sq ft of modern logistics space on a 1.27-acre plot which fronts onto the A13 and is within 20 minutes’ drive of both Canary Wharf and the City of London.
The four units are currently fully-let to a mix of food ‘cash and carry’ retailers and upon lease expiry Valor intends to modernise and reposition the estate to meet demand from last-mile ecommerce businesses.
Barking is characterised by a very low availability of light industrial space as pressure to deliver housing in East London is leading to the reallocation of industrial land.
According to Valor’s analysis, the vacancy rate in the London Boroughs of Barking and Newham is sub 3%, close to an all-time low, and is likely to tighten further with the areas forecast to lose around 10% of existing industrial space to other uses by 2025.
The deal, completed for an undisclosed sum, further expands Valor’s footprint in East London, which now totals 860,000 sq ft and 12 assets in the prime logistics locations of Canning Town, Barking, Beckton and Leyton.
Jeremy Achkar, UK Transactions Lead at Valor, commented: “We see very strong fundamentals in the East London Boroughs of Barking and Newham, where the pressure to deliver housing and ongoing urban regeneration is limiting the delivery of last-mile distribution space. The lack of future supply coupled with a fast-growing population and strong occupier demand will underpin rental and capital growth over the next five years. We are very pleased to complete another transaction off-market in a prime industrial location and look forward to bringing forward our plans for the asset.”