Prologis lands office centre at Heathrow

Prologis has completed its purchase of a 203,000 sq ft office centre at Heathrow Airport for £100m – two months after Property Week revealed it had gone under offer on the Compass Centre building.

The developer has acquired the asset (pictured) on the edge of Heathrow Airport at a net initial yield of 5.5% from Arora Group.

The 15-acre site, which is let to the airport on a lease expiring in June 2023, comprises a 10.5-acre office site and a 4.5-acre car park on Nelson Road on the northern side of Heathrow Airport near the M25.

Robin Woodbridge, head of capital deployment and leasing for Prologis in the UK, said: “While we have no immediate plans to develop the property or land and the office building, there may be scope to redevelop it for logistics use at some point in the future.”

Arora Group director Sanjay Arora  said: “The Compass Centre has been a strategic asset in the portfolio for many years. But with the change in the business environment post Covid, we are pleased to have sold the asset to Prologis, releasing funds to facilitate new projects.”

Colliers advised Arora Group. Prologis was advised by agents at Lee Baron and Ereira Mendoza.

The Compass Centre was developed in 1992 and bought by property entrepreneur and hotelier Surinder Arora in 2008 as part of a £309m portfolio deal from the Airport Property Partnership in one of the biggest investment transactions that year, as tipped by Property Week at the time.

No Comments

Sorry, the comment form is closed at this time.