Brixton has boosted its holdings at Greenford Park in West London up to 1m sq ft.
The West-London shed-specialist now owns 1m sq ft at Greenford Park after buying a 133,000 sq ft distribution unit adjacent to its existing site for £21m from British Land.
The property is let to Kuehne & Nigel Drinkflow Logistics with a surety from Scottish and Newcastle until 2022, at rent of £8.44 per sq ft. A rent review is due in December this year.
The purchase reflects a net initial yield of 5.1%.
Tim Wheeler, Brixton chief executive, said: ‘If you look at CBRE's November Monthly Index they estimate that across the UK equivalent yields for distribution units have moved out by 65 bps since June to 5.65% and prime London industrial stock (excluding Heathrow) has fallen back 25 bps to 5%, the same as it was at the start of the year.
‘We believe that the market would have paid close to 4.75% equivalent for this property in the summer and we see value enhancement here not least for its integration into our management regime. This is one of a number of investments that we are looking to acquire at what we see as a very interesting phase in the cycle'.