The Airport Property Partnership (APP), the 50-50 joint venture between SEGRO and Aviva Investors, has sold the Gatwick International Distribution Centre to Royal London Asset Management for £31 million. Gerald Eve advised APP on the sale.
The 29-unit industrial estate, located in Crawley two miles south of Gatwick Airport, comprises 222,598 sq ft (20,680 sq m) of space and generates £1.4 million of passing rent per annum, reflecting a topped-up net initial yield of 5.3%. The current vacancy rate of the estate is 5.7%
The transaction does not include Gatwick Cargo Centre, the only on-airport cargo facility offering direct airside access, which is retained by APP.
John Rodgers, partner at Gerald Eve, said: “With an acute shortage of stock in the market, Gatwick International Distribution Centre generated significant interest, culminating in a strong, competitive bidding process. This deal highlights the continuing strength of investor following in the industrial sector for quality real estate in the right locations, underpinned by sound occupational fundamentals”
The sale is the first transaction to be advised on by Gerald Eve’s newly-expanded capital markets team following the firm’s recent acquisitions. Of the 36 new arrivals, 16 have joined the capital markets team with the remaining 20 split between the firm’s agency, lease advisory and lease exit departments.