Hines buys logistics warehouses near Heathrow Airport
Hines has acquired three logistics warehouses at Dnata City logistics park near Heathrow Airport, from Aberdeen Standard Investments.
The investor bought the 10-acre plot on behalf of its pan-European core fund, for £80m.
The 209,000 sq ft Dnata City complex was developed in 2013 and comprises three logistical warehouses with secure air cargo campus facilities. Dnata is Heathrow’s dominant cargo operator.
Hines has acquired three logistics warehouses at Dnata City logistics park near Heathrow Airport, from Aberdeen Standard Investments.
The investor bought the 10-acre plot on behalf of its pan-European core fund, for £80m.
The 209,000 sq ft Dnata City complex was developed in 2013 and comprises three logistical warehouses with secure air cargo campus facilities. Dnata is Heathrow’s dominant cargo operator.
The news comes as Heathrow Airport plans to double its cargo capacity and become one of Europe’s biggest cargo airports, with a stated aim of increasing cargo tonnage to 4m tonnes per annum by 2040.
While the majority of the Heathrow logistics market is dedicated to serving the airport, it also forms part of West London’s wider distribution infrastructure including other sub-markets at Park Royal, Feltham, and Poyle.
Since 2019, the fund has sought to increase its exposure to urban logistics assets in key European cities.
The Heathrow acquisition represents the fourth urban logistics investment by HECF, and the third in Greater London, over the past 18 months.
Peter Epping, senior managing director and HECF fund manager at Hines, said: “Given the heavily supply-constrained location, we see strong long-term prospects for this prime asset beside one of Europe’s busiest airports, which will be a critical part of the UK’s travel and logistics infrastructure beyond the pandemic.
“This latest acquisition continues our strategy of leveraging our European platform and aggregating an urban logistics portfolio for HECF in European cities with the strongest long-term growth prospects.”
Greg Cooper, director of industrials and logistics at Hines UK, said: “The Heathrow logistics market boasts defensive characteristics of restricted supply, limited new development opportunities and an acute shortage of Grade A fit-for-purpose accommodation.”
Nick Smith, fund manager at ASI’s AIPUT fund, said: “In a near-zero interest rate environment, coupled with a drive to own and build resilient global supply chain networks, the investment market for the best critical infrastructure and industrial property has never been stronger.
“This sale is in line with our strategy to adjust the AIPUT portfolio to facilitate new investment opportunities presented in the post-Covid, post-Brexit world, and leverage the economic recovery when it comes.
“We will redeploy the proceeds into strategic airport locations with the strongest potential to generate value, including those within our portfolio where we will secure higher returns for our investors.”
Hines was advised by Acre LLP and Aberdeen Standard was advised by Savills and DTRE.
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