A 128,000 sq ft retail park has been bought for more than £50m and is set to be converted into warehouses for online retailers.
Investment firm M&G has sold Ravenside Retail Park in Edmonton, north London, to warehouse company Prologis for £51.4m. The deal was finalised shortly before Christmas.
Tenants currently include Mothercare, Argos, Carpetright, Wren, Tapi Carpets and Wickes.
Robin Woodbridge, head of capital deployment for Prologis in the UK, said the park would continue to operate as a retail park for the “foreseeable future, with potential redevelopment to industrial logistics in the medium to long term”.
“The UK retail market is changing, as more and more people order goods online. Because of this, our customers, who include household retail names such as Amazon, Argos and John Lewis, need logistics facilities close to where people live and work, so they can fulfil deliveries of goods ordered online efficiently.
“As a leading provider of logistics parks, we need to ensure we have the locations available for our customers so they can deliver goods to consumers as quickly and sustainably as possible. Around London this means, amongst other things, having sites available for customers where they can operate electric delivery vehicles and where employees can get to work via public transport rather than by car, thereby reducing congestion and pollution.”
He added: “As a retail warehouse park, Ravenside is of the right size and in the right location to meet these criteria. However, other assets we are in the process of acquiring, or have acquired, vary in terms of their age and current uses. For example, we have acquired a listed, run-down warehouse in Bromley By Bow, a bakery and some existing logistics warehouses. Like Ravenside, these assets are located in traditional industrial areas, close to good public transport links and are close enough to conurbations to facilitate delivery by electric vehicles.”
It comes after M&G, which owns shopping centres across the country, said last week that it will continue the temporary suspension of its £2.5bn M&G Property Portfolio fund “until further notice”.
The fund’s biggest holdings include shopping centres such as Fremlin Walk in Maidstone, Kent, the Gracechurch Centre in Sutton Coldfield, and the Bridgend Designer Outlet in Wales.
Drapers has contacted M&G for comment.