Prologis has completed its purchase of a 203,000 sq ft of office space at Heathrow Airport for £100m
The developer has acquired the Compass Centre (pictured) on the edge of Heathrow Airport at a net initial yield of 5.5% from the Arora Group.
The 15-acre site, which is entirely let to the airport with a lease expiring in June 2023, comprises a 10.5-acre office site and a 4.5-acre car park on Nelson Road on the northern side of Heathrow Airport near the M25.
Robin Woodbridge, head of capital deployment and leasing for Prologis in the UK, said: “We are delighted to secure this prestigious building and its surrounding land, at a time when demand for industrial space and land for development is soaring, especially in areas close to London.
“Competition is particularly intense for this type of package and we are pleased to have been able to complete the transaction off-market.
“While we have no immediate plans to develop the property or land and the office building, there may be scope to redevelop it for logistics use at some point in the future.”
The Compass Centre was developed in 1992 and snapped up by property entrepreneur and hotelier Surinder Arora in 2008 as part of a portfolio deal, as tipped by Property Week at the time. The Arora Family Trust acquired the site as part of a £309m portfolio deal from the Airport Property Partnership, a joint venture between BAA and Morley, in one of the biggest investment transactions completed that year. The site was refurbished in 2009 at a cost of around £36m.
Carl Whayman, CEO of Lee Baron, said: “The Lee Baron team did a fantastic job assisting with the sale of the iconic Compass Centre building. Prologis UK recognised that this is a great opportunity to expand the breadth of their already impressive portfolio. We are pleased that the unparalleled expertise of our team has enabled this transaction to be completed off-market, as these investments are incredibly in demand.”
Prologis was advised by agents at Lee Baron.
(Originally published by Property Week on December 10, 2021)