SEGRO Acquires Final Piece of the Puzzle for £85M West London Estate

13/06/2008

SEGRO, Europe’s leading provider of flexible business space, has purchased the Lowery site at Victory Way, Heston to complete the assembly of a 484,391 sq ft (45,000 sq m) estate, valued at over £85 million.

The 1.6 acre (0.64 hectare) site has been acquired from a private individual in a sale and leaseback transaction. An initial payment of £2.15m was made subject to a leaseback for a maximum of five years at a starting rent of £140,000 pa. The remaining £1.35m will be paid on vacant possession.

The property, located adjacent to SEGRO’s existing Heston Centre and Airlinks Estate, comprises a 7,000 sq ft (650 sq m) modern office building, workshops and a yard.

Phil Redding, director of SEGRO’s London Markets, comments: “This acquisition completes SEGRO’s ownership of the 27 acre (11 ha) acre site, in a strategic location within the Heathrow area. The long term intention is to redevelop the Lowery site to provide a new self-contained m 28,000 sq ft (2,600 sq) warehouse following the relocation of the existing occupier. In the meantime this is a sound, income producing investment. The Heston Centre is now a core part of SEGRO’s LHR portfolio and this bolt on purchase will be complemented by further investment in the estate through a rolling programme of refurbishments.”

The Heston Centre was acquired by SEGRO in 2004 as part of a property swap with Land Securities, and The Airlinks Estate was acquired as part of a property swap with Legal & General in 2007. Major occupiers on the estate include UPS, Air Fayre, and TNT.

Vail Williams advised SEGRO and Swire Eves advised the private vendor.

For further information contact:
Kate Titchmarsh, TTA Group, Tel: 020 7886 0309 / 07976 373 038
ktitchmarsh@ttagroup.co.uk
www.thelhr.com
www.SEGRO.com