SEGRO plc has announced the sale of SEGRO Park Victoria Road in Park Royal, West London, to the Imperial College London (‘Imperial’) for a base consideration of £115 million, a premium to book value.
SEGRO has owned the 10-acre urban warehouse estate since 2009, when it acquired Brixton plc. Since then, SEGRO has actively managed the estate and increased rents significantly. However, the estate’s age and layout have meant that its recent strategy has been to secure vacant possession to facilitate redevelopment. Consequently, the estate is 64 per cent occupied and generates a rental income of £3.2 million.
Imperial will operate the site to provide commercial science innovation facilities to early-stage companies with interests aligned with the university’s academic mission as part of the ‘WestTech Corridor’, a new globally competitive innovation ecosystem in West London. Imperial’s strategic partners, Old Oak and Park Royal Development Corporation (OPDC) and Ealing Council have identified the site for future mixed-use development as part of the area’s significant regeneration plans.
Bonnie Minshull, head of London at SEGRO, said:
“SEGRO Park Victoria Road has performed very well for SEGRO over the past decade. This sale to a special purchaser for the provision of commercial science and innovation facilities allows us to reinvest the proceeds into our wider London portfolio.
“Imperial’s WestTech Corridor vision is a welcome initiative from a world-leading institution, adding another powerful driver of demand to London’s primary industrial and logistics cluster, in which SEGRO owns approximately 6 million square feet of space.”
Hugh Brady, Imperial president, said:
“Imperial College London is investing in its ambitious vision for a new globally competitive deep tech innovation ecosystem in West London. The Imperial WestTech Corridor will act as a powerful engine for investment, inclusive economic growth, and job creation at a local, regional, and national level supported by the Government’s emerging Industrial Strategy.”
SEGRO was advised by Montagu Evans and Gowling WLG (UK) LLP. Savills (UK) Ltd acted on Imperial’s behalf as agents, and CMS Cameron McKenna Nabarro Olswang LLP acted as Imperial’s legal advisor.
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