M7 capitalises on Heathrow land play

M7 Real Estate (“M7”) the pan-European investor and asset manager has, on behalf of a major fund, agreed a new 15 year lease to current long term tenants, Saints Transport Ltd, at Parr’s Yard which comprises 2.2 acres of land just outside Heathrow Airport, at a significantly enhanced rental level.

Through M7’s relationship with the occupier, M7 managed to negotiate a headline rent of £500,000 p.a. equating to £5.05psf, a 68% increase, on a new 15 year lease with a mutual break in year ten.

Parr’s Yard is located in the middle of the designated Compulsory Purchase area for the new Heathrow expansion and the deal has been negotiated to maximise the exit value for the fund.

Dan Roberts, Senior Asset Manager at M7 commented: “Over the past few years Thames Valley and the Western Corridor has seen record highs in demand for commercial space, but all -time lows for supply. It has been increasingly difficult for occupiers to find suitable open storage, particularly in the South East, and with the continued demand for “last mile” access to our cities these sites are becoming increasingly valuable for the logistics operator. We were extremely happy to retain Saints at this site for the foreseeable future, which remains under threat from the proposed Heathrow expansion.”