Segro’s Victoria Road warehouse transitions to Imperial College’s ownership in a £115m deal.
- The 10-acre site, pivotal for commercial science, is part of the Westtech Corridor initiative.
- Imperial aims to revitalize the estate for early-stage scientific businesses.
- The site faces a potential transformative mixed-use development with Imperial’s partners.
- Segro plans to reinvest sale proceeds into its broader London portfolio.
In a strategic move, Segro has sold its sizeable Victoria Road warehouse facility to Imperial College London for an impressive £115 million. This transaction marks a significant development in the realm of commercial real estate and academia as Imperial College prepares to transform the property into a hub for early-stage companies focused on scientific innovation.
The warehouse, spanning a vast 10-acre site in Park Royal, West London, has been under Segro’s ownership since it acquired Brixton plc in 2009. Adventurous in its vision, Imperial College aims to breathe new life into the estate as part of its ambitious Westtech Corridor project, an initiative designed to spur technological progress and innovation in West London’s vibrant industrial sector.
Previously, Segro had started exploring redevelopment avenues due to the ageing infrastructure and layout, which led to the cessation of new tenant agreements. The occupancy rate had dwindled to a mere 64%, generating a reduced rental income of £3.2 million. Despite these setbacks, the warehouse’s strategic importance remains unquestioned, now being envisaged as a cradle for developmental scientific ventures.
Imperial’s acquisition also synchronises with broader regional regeneration strategies, as the site is slated for future mixed-use developments in collaboration with strategic partners, including the Old Oak and Park Royal Development Corporation and Ealing Council. This plan aligns with efforts to reinvigorate the local economy, linking academia and industry seamlessly in a high-tech ecosystem model.
Segro, meanwhile, intends to channel the capital gained from this transaction back into its existing London operations. Bonnie Minshull, the head of London at Segro, indicated that although Segro Park Victoria Road performed robustly over the years, this divestment presents an opportunity to enhance their broader London portfolio. This move underscores the dynamic nature of property management and strategic reinvestment.
The sale of Segro’s Victoria Road warehouse underscores a strategic alignment between property management and academic innovation in London’s industrial landscape.
