Valor Real Estate Partners purchases London warehouse at 3.5% yield

Schroder REIT (SREIT) has sold Booker-let warehouse in Acton, West London, to Valor Real Estate Partners for £18.9 million — a net initial yield of 3.5%.

The addition of the 64,614 sq ft warehouse has now taken Valor’s Greater London portfolio to 1.3 million sq ft. The site is currently let to Booker until 2026 and produces an annual income of £700,000.

Valor has acquired £300 million of logistics assets in Greater London since Q4 2016, and more than €600 million of in-fill logistics assets across 21 transactions in the UK, France and Germany.

Principal at Valor, Cane Napolitano, says: “In addition to being Valor’s fourth acquisition of 2019 within the urban submarkets of London’s transit zones 2-4, this investment is our second in as many months in an area undergoing regeneration. Similarly, to our April acquisition in Barking, the Acton industrial submarket is incredibly supply-constrained and is facing a further loss of industrial stock through residential up-zoning.”

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.