Privately owned property investment firm Hines has paid Aberdeen Standard Investments £80 million (€88.4 million) for a logistics park beside London’s Heathrow Airport.
The asset has been acquired for the Hines Pan-European Core Fund (HECF). The park was developed in 2013 and comprises three logistics warehouses that provide secure air cargo campus facilities.
The 19,418 sq m (209,014 sq ft) complex is located just south of the airport’s southern perimeter boundary and is occupied by cargo operator Dnata – Dubai National Air Transport Association. The asset has been dubbed Dnata City.
Hines pointed out that Heathrow Airport, already the busiest airport in Europe in terms of passenger traffic, plans to double its cargo capacity and become one of Europe’s biggest cargo airports, aiming to increase cargo traffic to 4m tonnes per year by 2040.
Asset also serves wider west London market
The firm said that most of the Heathrow area logistics market is dedicated to serving the airport, but it also forms part of West London’s wider distribution infrastructure. HECF has sought to increase exposure to urban logistics assets in key European cities since last year and the Heathrow acquisition is its fourth urban logistics investment, and third in Greater London during the last 18 months.
“The Dnata City site offers excellent proximity to Heathrow. 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,” said Peter Epping, Senior Managing Director and HECF Fund Manager at Hines.
Hines was advised by Acre LLP and Aberdeen Standard was advised by Savills and DTRE.