Prudential has bought UBS Asset Managers’ Summit Industrial Estate at Heathrow in one of the biggest industrial investment sales so far this year.
The deal demonstrates that last year’s heated industrial investment market has yet to cool down. Prudential paid £24.5m for the 16,190 sq m (174,290 sq ft) centre on Bath Road, reflecting a yield of just 6%.
The six-unit estate is let to tenants that include electrical companies Sony, Aiwa and Tandy.
Rents average £96/sq m (£8.92/ sq ft), but with industrial rents at Heathrow hitting £134.55/sq m (£12.50/sq ft), there is potential for growth. Demand is largely from the air cargo and telecoms sectors. The scheme has around 30% office content.
Whitmarsh Holt Young acted for UBS. Knight Frank acted for Prudenti