SEGRO has purchased Bath Road Shopping Park, in Slough, from Royal London Asset Management for £120.25m, with a view to potentially redeveloping the site into modern warehousing and data centres.
The 191,500 sq ft retail park, which is located next to the Slough Trading Estate and covers approximately 11.4 acres, includes 10 retail warehouse units, four of which are currently vacant. The remaining leases expire between 2023 and 2028.
Royal London, which acquired the property in January 2016 for £96.35m from The Crown Estate, also sold the drive thru’ restaurant that fronts the site to the tenant, McDonalds, for £3.5m.
Elise Buchanan, senior asset manager at Royal London Asset Management said: “Royal London is delighted to announce the sale of the Bath Road Shopping Park, Slough. In a challenging market, the price achieved reflects a premium to the existing use value.”
Stephanie Hacking, portfolio fund manager for the Royal London Pension Property Fund that sold the asset added: “This is an excellent sale in a difficult market at a price that is accretive to fund performance. The sale will allow the fund to recycle capital into other sectors that we consider offer better future performance prospects.”
SEGRO was represented by Knight Frank and CMS. CBRE and GunnerCooke advised Royal London.
