GLi – a joint venture between KSP and PATRIZIA - has acquired a 2.79-acre site to speculatively build a new prime ultra-sustainable warehouse in Park Royal, West London, adding to its fast-growing London urban logistics portfolio.
PR3 is at the heart of Park Royal, West London’s premier industrial location and occupies a prominent corner location on Twyford Abbey Road, previously operated by Gowing & Pursey as its main waste transfer facility. It boasts exceptional connectivity via the North Circular Road, A41 and M25, and complements the GLi platform’s existing acquisitions in the area, with its first site PR1 already pre-let and PR2 under construction. Combined, GLi is delivering nearly 250,000 sqft of best-in-class industrial facilities in Park Royal.
The acquisition is part of the GLi platform that has €1 billion investment capacity to invest in urban logistics. The new site continues GLi’s expansion as it further bolsters its Greater London offer, aiming to meet increasing market demand for last mile logistics space within the M25. Other GLi locations include Charlton, Croydon and Mitcham.
As with all GLi properties, the new site will be highly energy efficient and redeveloped on a net zero carbon basis with sustainability a key priority. Additionally, it will be 100% electric powered, offer fully equipped car and delivery van EV charging points and include battery storage as standard to save on occupier energy costs, responding to market demand for environmentally responsible real estate. It will also have biodiverse landscaping and rainwater harvesting. Units will be designed with customer and employee wellbeing considerations at heart, such as access to natural daylight, air conditioning and bicycle storage.
David Johnson, Chief Executive Officer at KSP, said: “We are very excited to add a third Park Royal property to our portfolio, especially when there is such competition for sites in this key location. This allows us to continue our growth not just in West London but across the capital, enabling us to create Grade A, ultra-sustainable industrial units in key target markets for our future tenants who are looking to expand or relocate in the area.
“We have successfully pre-let our first site (PR1) on Abbey Road to Classic Fine Foods/Metro AG, a local Park Royal company, and expect to see a lot of interest in this unit, too.”
“We are also encouraged that our sustainable designs, including battery storage, are proving so effective in achieving premium rents, benefiting our occupiers by reducing energy costs and increasing resilience and energy independence.”
“This acquisition grows our footprint in West London and underlines our confidence that demand will remain robust for high-quality last-mile logistics in the capital, despite the ongoing uncertainty. Not only will PR3 broaden our portfolio of ultra-sustainable assets, it will support PATRIZIA’s strategy to achieve net-zero carbon status across all of its operations and real estate portfolio by 2040 or before,” said Mark Krol, Fund Manager, PATRIZIA.
GLi is a partnership between London-based asset manager and developer KSP and global real asset investment manager PATRIZIA. The GLi platform aims to invest a further GBP 640 million in assets in strategic locations across Greater London. GLi will be looking to submit detailed planning in Q1 2023.