Prologis acquires London mixed-use park

Prologis UK – an investor, owner, and developer of logistic properties – has acquired a London-based mixed-use asset from DTZ Investors.

Prologis Park Western Avenue is located in the Park Royal area of the capital and is a prominent mixed-use logistics, industrial, and retail park.

Spanning 288,523 sq ft across a site of 16.14 acres, the estate is currently leased to 21 tenants. It has direct access to the A40 dual carriageway, providing access to London’s inner road network. It is also within 15 minutes’ walking distance of five underground stations.

The site offers potential for future redevelopment which could expand and increase density at the site, including with the creation of data centres and logistics fulfilment centres.

The acquisition brings Prologis’ assets under management in the UK to $9.4bn (£7.3bn).

Paul Weston, regional head of Prologis UK, said: “This acquisition is a significant milestone for Prologis. It reinforces our strategic investment commitments to the UK industrial and logistics market here in London, supporting the growth of our national economy. 

“Park Royal is the most successful logistics location in the capital. Through confident and swift work with everyone involved, we’ve secured a new park which will complement our existing portfolio, ensuring that we stay at the forefront of the UK’s logistics sector.”

Kevin O’Connor, senior director at DTZ Investors, said: “The asset was sold to fulfil the long term strategy of the fund managed by DTZ Investors. This transaction reflects the continuing strength of demand for prime inner London Industrial estates required to serve the capital. 

“The fund acquired the West Five retail park in 2016, adding it to the existing Western Avenue Business Park holding and enhancing the overall attractiveness of the asset to potential investors.”

Prologis was represented by DTRE, whilst DTZ Investors was represented by ACRE Capital Real Estate.