LaSalle snaps up South East distribution parks for £95m

LaSalle Investment Management has snapped up two new distribution parks in the South East for £95m.

Acting on behalf of Greater Manchester Pension Fund, the global real estate investment manager acquired the schemes from Peel Logistics Property and Rockspring TransEuropean Property V Limited Partnership.

The first, Island Road in Reading, was completed in May 2017. The development comprises 253,383 sq ft of space across three warehouses based on a 20.5-acre site.

Two of the units are occupied; one by retailer Argos, on a 10-year lease, and the other by power distribution systems firm Universal Electric Corporation on a 25-year lease.

The second scheme in the deal, South Central in Southampton, is being speculatively developed by Peel Logistics Property and funded by Rockspring Property Investment Managers LLP, part of Germany-headquartered property giant Patrizia.

IThe 16.12-acre site, which will provide 202,147 sq ft of space across three warehouses, is due for practical completion in July.

One of the development’s units is pre-let to department store chain John Lewis on a 15-year lease.

LaSalle Investment Management’s head of national business space, Paul Till, said: “The acquisitions are part of our strategy to acquire dominant, high quality industrial assets for this portfolio.

“Island Road and South Central are specifically designed to appeal to logistics and e-commerce occupiers, which is reflected in the quality of the lettings to date.”

He continued: “The assets are well-situated within their respective markets of Reading and Southampton to take advantage of nearby distribution networks.

“Both hubs benefit from strong occupier demand with limited supply, so we anticipate strong rental growth for these high-quality distribution assets.”

JLL advised LaSalle and Colliers International acted for Peel and Rockspring.