British Land makes West London logistics space acquisition

British Land has continued its acquisition of key logistics properties as it exchanged contracts to acquire three Wembley warehouses for £157m.

Spread over a 12.5 acre site in West London, the warehouse space amounts to over 245,000 square feet. They are fully let to Amazon, Euro Car Parts and the North London Waste Authority. They generate an annual income of £3.6 million and would thereby give a net initial yield of 2.3%.

According to British Land it has plans to develop a multi-storey urban logistics hub on the site. It has excellent links to the North Circular and the M25, giving good access to central and west London and the rest of the UK.

In total, British Land now has an urban logistics development pipeline worth more than £1 billion in gross development value. This includes recent acquisitions in Enfield, North London; Thurrock in East London and Finsbury Square in the City.

Simon Carter, chief executive of British Land, said: “This acquisition is another example of the strong progress we are making against our strategy to address the chronic shortage of urban logistics space in central London via intensification and repurposing. Wembley is ideally located for vehicles coming into London and subsequently out for delivery with excellent access to affluent parts of the capital. 

“This latest acquisition follows acquisitions in Enfield to the north of London, Thurrock to the east and Finsbury Square in the city, and along with opportunities we have identified on our standing portfolio, brings the total gross development value of our urban logistics pipeline to over £1bn, with a blended forecast IRR from acquisition of c.15% across the pipeline.”

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