DHL has taken a 100,833 sq ft unit in north London as the urban logistics market changes gear.
DHL has taken an assignment on from Polyco of the unit at 19 Crown Road in Enfield, north London. Savills jointly with Bowyer Bryce and Doherty Baines, advised.
DHL will pay an annual rent of £878,000, equating to £8.70 a sq ft.
Toby Green, director in the national industrial & logistics team at Savills, comments: “19 Crown Road offers premium warehouse space with excellent access to both the A10 and M25. Enfield continues to remain popular with industrial / warehouse occupiers due to its strong connectivity and access to numerous chimney pots of North London making it the ideal place for DHL to run its local operations.”
The deal comes as investors pile into urban logistics properties – partly because they see continued high demand from parcels operators meeting e-commerce requirements, and partly because the sites have strong reversionary potential. This means they could be redeveloped – potentially for other uses, including housing - if demand for urban logistics goes into reverse.
The deal comes as LondonMetric Property Plc announces the acquisition of three separate urban logistic warehouses in Crawley, Coventry and Huyton (Liverpool) for £23.9 million. Savills advised.
LondonMetric has acquired a 51,000 sq ft warehouse located close to Gatwick airport. The warehouse is let for a further 6.4 years to TNT at a rent of £6.31 a sq ft, some way below potential valuations. There is a break clause and an open market rent review in 2018.
LondonMetric has acquired a 90,000 sq ft warehouse located immediately adjacent to Coventry Airport and 0.5 miles from the A45/A46 junction. The warehouse is let to DHL on a new ten year lease at a rent of £4.75 a sq ft. There is a break clause and an open market rent review in five years.
At Huyton, LondonMetric has acquired a 120,000 sq ft warehouse located on the M62/M57 intersection. The warehouse is let to Antolin Interiors, part of Grupo Antolin, on a new 15 year lease, at a rent of £6.20 a sq ft, subject to inflation-linked rent reviews.
LondonMetric was advised by Cogent Real Estate and FTD Johns on Crawley, by Levy on Coventry and by JLL on Huyton. Lambert Smith Hampton and CBRE acted for the vendors on Coventry and Huyton respectively.