Prologis, the US based developer, has bought a North London retail park as the logistics property sector moves in on retail sites as potential last-mile delivery locations.
Prologis paid £51.4 million for the 128,000 sq ft site at Ravenside Retail Park in Edmonton.
The shop units will eventually be converted into last mile deliver hubs. Today tenants include Argos, Wickes and Mothercare.
The expansion of the logistics property business into well-located city-fringe retail sites has been predicted for several months. The surge in online shopping that has prompted growth in warehouse property has simultaneously prompted a rapid fall in the value of retail property. Putting warehouses in former out-of-town shopping sites is a neat solution.
Simon Dove, partner at specialist Leeds logistics property consultancy Dove Haigh Phillips, explained: “There will come a point when the retail warehousing of the last few decades, which is often in good town-centre fringe locations, will be ideal of last-mile delivery. Today they would be too expensive, about £16 a sq ft, but I can see the day when logistics operators will see the value in using them. That is definitely the direction of travel.”